RSA Insurance Group plc (“RSA”) has announced that RSA Insurance Ireland has suspended its chief executive officer, Philip Smith, chief financial officer, Rory O'Connor, and claims director, Peter Burke, pending the outcome of an investigation into issues in the Irish claims and finance functions that were identified during a routine internal audit.
RSA said that no findings had been made against any individuals at this time.
As a result of these issues, RSA estimated that its 2013 operating result would be £70 million lower than current market expectations. RSA Insurance Ireland said that it has informed the Central Bank of Ireland and said that it was working closely with the central bank.
As a result of the above, RSA said that it has injected capital into RSA Insurance Ireland to ensure its solvency ratio was comfortably in excess of 200 percent. According to the company, no policyholders had been affected and all Irish businesses continued to operate as normal.
Adrian Brown, currently CEO for the U.K. and Western Europe, is acting CEO, Chris Rash, currently group chief accountant, is acting CFO for RSA Insurance Ireland, and David Pitt, currently claims director for the U.K. and Western Europe, is taking operational leadership of the Irish claims function.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].