Shares in RSA rise ahead of report on Irish difficulties

Shares in RSA Insurance rose by 2.5 per cent this morning, up to their highest level since December 11th, ahead of the delivery of a report into the financial irregularities in its Irish business later today.

The board of the UK insurer will meet today to discuss the PwC report into the financial and regulatory reporting processes and controls within the Irish business and the group oversight of these alongside further assurance reviews commissioned by the board.

In a statement, the insurer said that it is “confident in our view that the financial and claims irregularities identified in November 2013 were isolated to Ireland”.

Furthermore, RSA confirms, as previously announced, that the impact of claims and financial irregularities and the reserve review in Ireland will come to £72m (€86.7m) and £128m respectively; totalling a combined £200m.

RSA Ireland chief executive Philip Smith resigned in November amid an investigation into whether the Irish unit reported the amount of premiums paid to the company earlier than it should have and the timing of when it set aside funds to cover claims.

Chief financial officer Rory O'Connor and claims director Peter Burke remain suspended.