| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Last Updated: Jan 10, 2014 - 6:46 AM

RSA Insurance fires two Irish executives for large loss/ accounting irregularities
By Finfacts Team
Jan 9, 2014 - 11:40 AM

Email this article
 Printer friendly page

RSA Insurance, the UK firm, said in a statement today that it had fired the RSA Ireland CFO, Rory O’Connor and the RSA Ireland claims director, Peter Burke, who "were dismissed for their roles in relation to large loss and claims accounting irregularities." Both dismissals were confirmed yesterday following the completion of appeal processes. The RSA Ireland chief executive Philip Smith who was suspended with his two colleagues in November, resigned that month.

A review by PricewaterhouseCoopers (PwC) of "electronic documents of circa 60 individuals has identified documentary evidence that supports the Board’s view that there has been inappropriate collaboration involving a small number of senior executives in Ireland. Specifically, this evidence suggests that certain individuals acted in such a way as to intentionally circumvent parts of the existing Control Framework."

RSA Insurance added: "In particular the large claim reserving policy was circumvented. By so doing, financial records did not fully reflect the financial position of the business and reports made to Group and Regional Management were inaccurate and potentially misleading. This undermined the effectiveness of controls which placed significant reliance on senior management integrity."

During Q4 2013, RSA announced a total of c.£200m (€242m) of losses within RSA Insurance Ireland. These losses comprise:

  • £72m arising from irregularities within the claims and finance functions, as announced previously on 8 November 20132. These losses were the focus of the PwC investigation and comprise: £37m from inappropriate collaboration on large loss and claims accounting; and £35m primarily from inappropriate accounting for net earned premiums and pipeline earnings.
  • £128m from the completion of the internal reserve review of the Irish Business, announced on 13 December 2013. These losses comprise: £62m relating to reserve strengthening for business written in 2013, of which c.80% is due to adverse bodily injury claims trends; and £66m relating to reserve strengthening for business written in previous years, of which 70% is due to adverse bodily injury claims trends.

RSA said the end of year group reserve review is currently underway and we will report its findings as normal in our preliminary results in February.

The insurer said that controls within the Irish finance function did not operate effectively allowing inappropriate accounting for Net Earned Premium and pipeline earnings. "A local programme of remediation has already begun and we continue to work with the Irish regulator, the Central Bank of Ireland."

Martin Scicluna, RSA executive chairman said: “The issues which emerged in our Irish business in 2013 were completely unacceptable and I have made it my personal priority to ensure that this never happens again. The Board is now confident that the financial and claims irregularities were isolated to Ireland and do not reflect the quality of our control framework elsewhere in the world.

“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."

The scandal at the insurance group, which led to RSA delivering three profit warnings in six weeks in the run-up to Christmas, triggered the resignation of group chief executive Simon Lee.

RSA says that it "has a long tradition in the Irish market, writing non-life insurance business here since 1721. We are the largest and fastest growing insurer in the Republic of Ireland with an extensive range of Commercial and Personal lines products channelled through a network of insurance brokers and scale partners and via the well known 123.ie brand, one of the leading direct personal insurance providers."

Check out our subscription service, Finfacts Premium , at a low annual charge of €25

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Ryanair revises up full-year profit guidance
AIB bank profitable in third quarter
Ryanair announces half-year profits up 32% to €795m
Ryanair benefits from improved customer service
Ryanair to buy 100 new Boeing 737 MAX 200
Finfacts server migration Thursday
State-owned Allied Irish Banks reports H1 2014 profit as bad loan charges plunge
Ryanair reports profit in its financial first quarter soared 152%
UK firm opens van dealership in Dublin
Ryanair reports 8% fall in full-year profit; US services to commence in 2019
Global Financial Centres Index: New York overtakes London; Dublin slips to 66 of 83 cities
Bank of Ireland reports “significant” improvement in 2013 results
Sale process of IBRC UK projects Rock and Salt completed
CRH says 2014 will be year of profit growth after reporting 2013 loss
Ryanair reports third-quarter loss
Irish Water says it saved €100m in setup costs
RSA Insurance fires two Irish executives for large loss/ accounting irregularities
Bank of Ireland will have to raise provisions by €1.4bn; AIB says it's "well capitalised"
CRH reports slightly improved third quarter
Central Bank says ownership of Newbridge Credit Union transferred to permanent tsb
Ryanair reports H1 profits rose by 1% to €602m
Dublin Web Summit: Irish Stock Exchange and NASDAQ OMX announce dual listing plan
Irish pension managed funds returned to growth during September
Dan O’Brien resigns as economics editor of The Irish Times
Central Bank says no action required on Anglo tapes revelations
Ryanair flew 9m passengers and Aer Lingus carried 1.1m in August
UK Competition Commission says Ryanair must cut Aer Lingus stake to 5%
CRH reports H1 2013 revenue dip and loss
Vodafone refunded UK after discovery of Irish tax haven deal
RBS reports half year profit; Ulster Bank posts reduced loss
Bank of Ireland cuts pretax losses in HI 2013 to €504m
Irish State-owned Allied Irish Banks reports losses of €758m in H1 2013
Service Announcement
Irish managed pension funds declined in June
VHI reports 2012 surplus of €54.3m; Health insurance made loss
Ex- Elan director says management / board "not competent to run a business"
Aer Lingus to put €140m in employees pensions fund; Ryanair apoplectic
Wednesday Newspaper Review - Irish Business News and International Stories - - May 22, 2013
Tuesday Newspaper Review - Irish Business News and International Stories - - May 21, 2013
Ryanair, Europe’s biggest low cost carrier, announced Monday record annual profits of €569m - - up 13%