RSA Insurance Ireland has suspended CEO Philip Smith, Chief Financial Officer Rory O’Connor and Claims Director Peter Burke pending the outcome of an investigation into issues in the Irish claims and finance functions that were identified during a routine internal audit, parent company RSA Insurance Group P.L.C. announced Friday.
“No findings have been made against any individuals at this time,” said RSA in a statement. But it added that because of the issues that led to the suspensions, the insurer’s 2013 operating results will be £70 million ($111.5 million) lower than current market expectations.
The parent company said RSA Insurance Ireland has informed the Central Bank of Ireland and is “working closely” with it.
“As a result of the above, (RSA Insurance Group) has today injected capital into RSA Insurance Ireland to ensure its solvency ratio is comfortably in excess of 200%,” said RSA in the statement. “No policyholders have been affected, and all our Irish businesses continue to operate as normal.”
RSA said Adrian Brown, RSA Insurance Group’s CEO for the U.K. and Western Europe has been named acting CEO. Chris Rash, group chief accountant, is acting chief financial officer of RSA Insurance Ireland; and David Pitt, claims director for the U.K. and Western Europe, is taking operational leadership of the Irish claims function.
Royal & Sun Alliance (Ireland) Ltd. reported a 5% year-on-year increase in premiums underwritten to £348 million ($565.4 million) in 2012 as compared with 2011, reports Irish Examiner.