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Member, Beacon International Group, Ltd.
RSA Insurance Group P.L.C., London, intends to appeal an Irish Employment Appeals Tribunal decision to award €1.25 million ($1.42 million) to the former CEO of its Irish unit, Philip Smith, who claimed he had been constructively dismissed from the company.
The tribunal in Dublin on Monday ruled that by suspending Mr. Smith pending an investigation into alleged financial and reporting irregularities at RSA Insurance Ireland in November 2013, RSA effectively had already decided his fate.
Mr. Smith was one of a trio of top executives at RSA Ireland suspended by the insurer while enquiries were made about under-reserving and reporting irregularities, which led to RSA needing to pump about €262 million ($297.13 million) of emergency capital into its Irish unit.
He resigned in late November 2013 claiming he had been made the “fall guy” for the affair.
The tribunal found that by suspending Mr. Smith in a very public manner, RSA effectively put him in a position where he could not continue his role with the insurer and severely damaged his reputation and future job prospects.
“We are extremely disappointed by the tribunal's decision and fundamentally disagree with it,” an RSA spokeswoman said in a statement.
“We are considering our options but intend to appeal the judgement,” the statement added.
(Reuters) — A former senior executive at RSA Ireland said on Thursday he did not feel the insurer’s top bosses in London would have supported him if he had tried to blow the whistle on the Irish unit under-reserving for claims.