RSA has accepted the resignation of Simon Lee, Group Chief Executive. He will stand down from the Board and leave the Group with immediate effect. He will not receive any payment beyond his contractual entitlement. Until a permanent replacement can be found the Board has asked Martin Scicluna, non-executive chairman to become executive chairman. The recruitment process has started with the appointment of an executive search firm. It is expected to take a number of months, at the conclusion of which Scicluna will revert to the role of non-executive chairman.
Scicluna comments “Simon felt it was in the best interests of the Group that he step down to enable a change in leadership. He has offered to help in any way that he can to ensure a smooth transition. I would like to thank Simon for his contribution to RSA over the last decade. He has provided strong leadership to the business over the last two years, a period that has featured a number of significant challenges. In his previous role as chief executive of International he was instrumental in developing the Group’s global portfolio. The Board wishes him well for the future.
The significant reserve strengthening in Ireland represents a further negative event and places additional strain on the capital metrics of the Group. The impact of this reserve strengthening, alongside the extreme weather in 2013 and the effect of financial irregularities in Ireland will be taken into consideration in the Board's dividend decision in February.
I am initiating a full review of the Group’s businesses with the objectives of improving the capital strength of the Group, optimising the Group’s business portfolio and delivering a sustainable dividend into the future. We will update on the progress of this review at our full year results presentation.
RSA remains a leading insurance brand. We have enviable market positions across the globe and attractive businesses with healthy underlying profitability. We have deep expertise and capability across our management team. The Board and I are confident that RSA will re-emerge as a stronger group in 2014.”
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