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Chief executive of RSA Insurance resigns, says he was the 'fall guy'

Philip Smith, who was suspended as the company investigates irregularities, said there was a “predetermined outcome”

Image: Philip Toscano/PA Wire/Press Association Images

PHILIP SMITH, THE head of RSA Insurance who had been suspended as the company investigates reported irregularities, has resigned.

RSA had suspended three staff after it claimed it had uncovered “issues” at the Irish operations “claims and finance functions”. It was then forced to inject up to €100 million into the Irish arm of the business, issuing a profit warning in the process.

Smith issued a statement today, saying that he and his family had been “traumatised” by recent events and doubting the fairness of any investigation, saying that it was set up to arrive at a “predetermined outcome”.

“I am certain that when the recent issues arose, that I quickly became the ‘fall guy’ for all issues. It is my firm belief that this opinion was arrived at irrespective of my involvement or otherwise, making it impossible for me to achieve justice and fairness. I have therefore been left with no other option but to resign.”

Smith added that the company had been praised in the past for their regulatory record.

A spokesperson for the company said that no money had been paid to Smith.

“The resignation is effective immediately. No severance payment has been made to Mr Smith.

“RSA has today commenced the search for a new CEO in Ireland. In the interim Adrian Brown (currently CEO UK and Western Europe) continues to operate as acting CEO of RSA Ireland.

“No policy holders have been affected and RSA Ireland’s business continues to operate as normal.”

Read: PWC brought in to investigate RSA claims and finance

Read: ‘They have a handle on it’: Noonan plays down fears over RSA Insurance

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