Watchdog probe into RSA's Irish unit

The Financial Reporting Council (FRC) said the probe was related to "financial irregularities" at the insurer.

It did not identify individuals or say if they still worked at the business.

 

RSA Insurance was forced to inject £200m into its Irish unit in 2013.

The company subsequently tapped shareholders for cash through a rights issue to help bolster its finances.

Compensation

RSA's Irish unit was bailed out weeks after the resignation of its chief executive Philip Smith and after the insurer informed the market about the accounting irregularities.

Mr Smith was initially suspended after an investigation was launched into issues in the Irish unit's claims and finance functions identified during a internal routine audit.

Last month, he won a €1.25m compensation payment for a constructive dismissal.

RSA is appealing against the award. 

RSA Group's chief executive, Simon Lee, also resigned in the wake of the crisis at the Irish unit. He was eventually replaced by former Royal Bank of Scotland boss Stephen Hester

The FRC said the investigation would cover 2012 "and relevant prior periods as a result of the identification of issues within the claims and accounting functions announced by RSA Insurance Group at the end of 2013".

RSA said the FRC's investigation was not into the company itself but into individuals who were members of accounting, auditing or actuarial professional bodies.

It said in a statement: "We understand that the investigation will therefore cover members of these professions who were employed by RSA at the time. RSA Group will of course assist with these inquiries if requested to do so."

The FRC said it would co-operate with the Irish authorities as necessary.