RSA Ireland chief executive quits amid accounting probe

The boss of RSA Irish unit has resigned after claiming he has been made "the fall-out guy" for the insurer's problems.

In a strongly worded attack likely to crank up the pressure on the company’s boss Simon Lee, Philip Smith said: “My family and I have been truly traumatized by recent events and I have taken this most difficult of decisions in the best interests of my family.”

Resigning “offers me the opportunity to pursue justice outside the current flawed process”, he added.

Smith was one of three executives at the insurer’s Irish business who were suspended earlier this month following the discovery of a black hole in its accounts during a routine internal audit at the firm.

The FTSE 100 insurer said that the accounting irregularity was likely to impact its profits by £70 million this year, just days after it had revealed that claims from the St Jude storm and flooding in Canada would also have a negative impact on its results.

In a statement, RSA confirmed Smith had resigned and said he would not receive any pay-off.