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RSA Insurance executives suspended as firm announces €84m profit shortfall

The company stressed that no policyholders have been affected and all our Irish businesses continue to operate as normal.

Image: RSA Group

Updated 10.53pm

RSA Insurance Ireland has suspended three of its executives, including its CEO Philip Smith, pending an investigation.

CFO Rory O’Connor and Claims Director Peter Burke have also been suspended pending the outcome of the investigation into issues in the Irish claims and finance functions of the company which were identified during a routine internal audit.

RSA owns and operates 123.ie. The company stressed that no policyholders have been affected and all our Irish businesses continue to operate as normal.

The company said today that as a result of these issues it estimates that its 2013 operating profits will be £70 million (€83.8 million)  lower than current market expectations. RSA said it has informed the Central Bank of Ireland and is working closely with them.

The review is ongoing and so RSA said it is too early to draw any firm conclusions or to reliably estimate the likely financial impact.

As a result, RSAI plc today injected capital into RSA Insurance Ireland to ensure its solvency ratio is comfortably in excess of 200 per cent.

Three other executives in the company’s insurance group have taken over the posts of the suspended staff.

First published 6.55pm

Read: Former Anglo Irish Bank to sue auditors who will ‘vigorously defend’ case>

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