Tuesday 12 November 2013

RSA Insurance taps PwC to review Irish business

RSA Insurance Group PLC (RSA.LN) said late Sunday it has appointed PwC to undertake a review of the issues identified last week in its Irish claims and finance functions.

The review will focus on the financial and regulatory reporting processes and controls within the Irish Business and the Group's oversight and controls of the Irish Business during the relevant period, the insurer said in a statement, adding that it will also assess the adequacy of the remedial actions being taken.

PwC will report back to the RSA Board before the end of the year, RSA said.

Simon Lee, Group Chief Executive, said: "While the investigation is ongoing, I am confident that these issues are isolated to the Irish business. No policyholders have been affected and all our Irish businesses continue to operate as normal".

"Nevertheless, we want to ensure that the actions being taken in Ireland and across the Group are correct and that all lessons are learnt", Mr. Lee said.

Late Friday RSA said it had suspended the chief executive and chief financial officer of its Irish division, as it investigates issues that were identified during a routine audit.

At that time the insurer said it estimates its 2013 operating profit will be 70 million pounds ($112.51 million) lower than expected due to the issues. The company didn't say what the issues were.

As well as RSA Insurance Ireland chief executive Philip Smith and chief financial officer Rory O" Connor, claims director Peter Burke has been suspended.

RSA Insurance also said Friday it has injected capital into RSA Insurance Ireland to ensure its solvency ratio is comfortably in excess of 200%.

Shares closed Friday at 121 pence valuing the company at GBP4.42 billion.

Source: Marketwatch.com

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