PwC to examine Royal & Sun Alliance issuesMonday 11 November 2013 07.31
Royal & Sun Alliance has appointed PwC to undertake a comprehensive review of the issues identified last week in its Irish claims and finance functions.
The review is to focus on the financial and regulatory reporting processes and controls within the Irish business and the group oversight and controls of the Irish Business.
RSA issued a statement today saying the review will also assess the adequacy of the remedial actions being taken.
PwC is due to report back to the RSA board before the end of the year.
RSA Insurance Ireland suspended three senior executives last week after issues with some Irish claims and finance functions were identified during a routine internal audit.
Chief Executive Philip Smith, Chief Financial Officer Rory O’Connor and Claims Director Peter Burke were all suspended, although RSA said no findings have been made against any individual at this time.
RSA said as a result it expects that its 2013 operating results will be £70m (€94m) lower than current market expectation.
RSA owns and operates 123.ie in Ireland.
It said no policyholders have been affected and "all our Irish businesses continue to operate as normal".
The firm said it had informed the Central Bank of the issue and was "working closely with them".
RSA Insurance Group said the matter was separate to its recent identification of the need to increase reserves due to an increase in bodily injury claims.
It said it has now injected capital into its Irish branch to "ensure its solvency ratio is comfortably in excess of 200%"
Today Simon Lee, Group Chief Executive of RSA, said the company is “extremely disappointed” with the issues that were identified and their financial impact on the group.
He said he is confident the issues are isolated to the Irish business.
Mr Lee said he wants to ensure that the actions being taken in Ireland and across the group are correct and that “all lessons are learnt.”