Review finds that Irish reserves need to be strengthened by £130m
RSA group chief executive Simon Lee has resigned after the insurer issued its third profit warning within six weeks.
He stepped down today after a review of RSA’s Irish business found bodily injury reserves need to be strengthened by £130m.
This is in addition to the £70m strengthening related to claims and accounting irregularities RSA announced last month.
Non-executive chairman Martin Scicluna will act as interim executive chairman while RSA finds a permanent replacement.
Scicluna said: “Simon felt it was in the best interests of the group that he step down to enable a change in leadership. He has offered to help in any way that he can to ensure a smooth transition.”
The group will inject £135m of capital into RSA Insurance Ireland today to keep its solvency ratio above 200%.
RSA warned the Irish reserve strengthening and the storms in Europe last week will lead to a further reduction in full-year profits. It now expects mid-single digit return on equity in 2013.
The search for Lee’s replacement is expected to take several months, after which Scicluna will revert to the role of non-executive chairman.
Scicluna has launched a full review to improve the group’s capital strength, optimise its portfolio and deliver a sustainable dividend. An independent PwC review into RSA will report its findings in the new year.
“We have deep expertise and capability across our management team. The board and I are confident that RSA will re-emerge as a stronger group in 2014,” he added.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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