* Bannister joins immediately, replaces Jonathan Moss
* Phoenix on track to deliver on all targets
* Moss in line for 1 million pound pay-off - source
* Shares up 2 percent, outperforming flat FTSE 250 (Adds further detail, background)
By Myles Neligan
LONDON, Feb 8 (Reuters) - British specialist insurer Phoenix unexpectedly jettisoned Chief Executive Jonathan Moss on Tuesday and replaced him with Clive Bannister, the former head of insurance at banking giant HSBC.
Bannister, who stepped down as HSBC's managing director of insurance and asset management last year, takes up the role immediately, Phoenix said.
"The board has agreed with Jonathan Moss that this is the right time for there to be a change of leadership of the company, and the Board has accepted Jonathan's resignation," the company said.
Moss led Phoenix, formerly known as Pearl, through a complex financial restructuring after heavy debts taken on to finance the acquisition of rival Resolution in 2007 threatened to overwhelm it.
Moss, who had a salary of 650,000 pounds ($1.05 million) per year, is in line for a pay-off of about 1 million pounds, and has accumulated shares worth a further 1 million pounds, a source familiar with the matter said.
Bannister will be paid a salary of 700,000 pounds a year.
The company, which buys and merges life insurers that no longer accept new customers, said Bannister was "ideally suited" to lead it.
Phoenix has previously said it expects to resume making acquisitions this year once it has negotiated new banking arrangements.
The company wants to consolidate two separate credit facilities and alter the timing of big repayments scheduled between 2014 and 2016, while persuading its banks to lift a cap on dividend payments.
Phoenix, which reports full year results on March 29, said it would hit all its 2010 financial objectives, with cash generation set to come in at the top of the target range of 625-725 million pounds.
Phoenix shares were up 2 percent at 645 pence by 1050 GMT, outperforming a flat FTSE 250 share index.
($1 = 0.6208 pound)
(Editing by Jane Merriman)