Broken up into monthly instalments, payments will be reduced or stopped if Lee gets a new job

The former RSA Group chief executive Simon Lee is set to receive a £824,000 payment following his resignation today from the company.

The payment will be made in monthly instalments and set off against any payments he receives for any future employment or appointment he accepts in the next 12 months.

The insurer said the payment is in line with his contractual agreement and added that Lee will not be entitled to any bonus payments for the 2013 and 2014 periods.

Lee quit after it emerged RSA will need another £130m reserve strengthening, on top of the £70m to repair its troubled Irish business. The insurer has also warned that its dividend is under review.

According to RSA’s April annual report Lee’s base salary was £824,000.