RSA reviewing reserves it uses to pay claims hereWednesday 06 November 2013 12.02
One of Ireland's largest insurance companies has said it will have to set aside more money to meet motor insurance claims in a move which will hit its financial performance.
RSA, which owns the 123.ie brand and employs 850 in Ireland, is reviewing the reserves it uses to pay claims.
The company said this would "adversely impact" RSA's group performance. Last year the UK-based group made a pre-tax profit of €583m.
In Ireland, the company has been making substantial inroads into the insurance market and now claims to be the largest provider of general insurance.
RSA today reported the "emergence of adverse bodily injury trends", adding that it is reviewing its "bodily injury reserves".
In its interim management statement for the third quarter, the company said the review was continuing and it was too early to draw any firm conclusions or to estimate its financial impact.
"It is probable that we will need to strengthen our Irish bodily injury reserves and this will also adversely impact the group's 2013 performance," it added.
The Central Bank said it does not comment on individual companies.