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RSA review concludes accounting problems confined to Ireland
January 9, 2014 / 7:27 AM / 4 years ago

RSA review concludes accounting problems confined to Ireland

LONDON, Jan 9 (Reuters) - British insurer RSA said a review of its businesses by accountants PwC concluded accounting irregularities at the company were confined to its Irish business and did not amount to a group-wide problem.

In a statement on Thursday, RSA said PwC considered its group control frameworks “appropriate” but had recommended some enhancements, which the insurer has adopted.

However, RSA said the review had found evidence of ”inappropriate collaboration“ among a ”small number of executives in Ireland.

“Certain individuals acted in such a way as to intentionally circumvent parts of the existing control framework,” RSA said.

The firm said following an internal disciplinary process, RSA Ireland Chief Financial Officer Rory O‘Connor and the unit’s Claims Director, Peter Burke, were “dismissed for their roles in relation to large loss and claims irregularities”.

The impact of claims and financial irregularities and the reserve review in Ireland amount to around 200 million pounds ($329.39 million).

In December, RSA said it needed to boost capital and might cut its dividend following three profit warnings and a move to strengthen reserves at its Irish business.

RSA shares have climbed around 8 percent since the start of 2014 after suffering heavy falls during the closing weeks of last year.

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