RSA Insurance Group P.L.C. has adopted an outside consultant's recommendations to enhance the operational effectiveness of groupwide assurance processes and Irish financial controls in the wake of financial and claims irregularities totaling £72 million ($118.2 million) the British insurer announced Thursday.

The announcement came as RSA made public the findings of audits by PricewaterhouseCoopers L.L.P., KPMG L.L.P. and RSA's internal audit function into those irregularities, which were identified in Ireland in November.

RSA said the PwC report makes a number of recommendations including conducting a review into the verification of policy adherence, enhancing the clarity of control standards and effectiveness of local implementation, and improving the balance of trust, integrity and accountability with challenge and independent verification.

“These recommendations have already been incorporated into a refresh of assurance processes across the group, many elements of which were already underway, and we will continue to engage with the UK Prudential Regulation Authority as this work progresses,” RSA said in a statement.

On Wednesday, RSA had assured markets that the trouble was confined to its Irish unit.

The insurer said the independent review from PwC describes RSA group control framework as appropriate in terms of structure and design, RSA said in a statement Thursday. RSA added that PwC's work supports the RSA board's view that inappropriate collaboration among a small number of senior executives in Ireland undermined control effectiveness over claims, and that additional assurance testing from newly appointed external auditor KPMG and RSA's internal audit confirms that the financial and claims irregularities were isolated to Ireland.

%%BREAK%%

RSA also confirmed the impact of financial and claims irregularities and the reserve review in Ireland at £72 million and £128 million ($210.1 million) respectively, totaling a combined £200 million ($328.3 million), and that “good progress” is being made on the business review announced in December.

“Our investigations have confirmed that the claims irregularities in Ireland were, in large part, the result of deliberate collaboration between a small number of executives there,” Martin Scicluna, RSA executive chairman, said in the statement. “These actions do not reflect the culture, ethos and values of our business that have served us well. We acknowledge that there are lessons to be learnt, and we are tightening elements of our control and financial framework in response to these events,”

“The board has always believed that the group's control framework is comprehensive and appropriate,” Mr. Scicluna said. “The work undertaken by PwC, KPMG and our own internal audit team has been valuable in providing comfort to the board, and we hope to our shareholders and regulators.”

RSA in November suspended the CEO, chief financial officer and claims director of its Irish unit after an internal audit identified the irregularities. After several subsequent profit warnings, RSA CEO Simon Lees resigned in December.