The former chief executive of Ireland’s largest insurance company, RSA, has taken a case against the company to the Employments Appeal Tribunal relating to the nature of his shock departure in November 2013.
Philip Smith’s appeal against his dismissal is listed for mention at the tribunal this morning. It is sure to generate significant interest given the drama that surrounded him leaving the insurer after six years in charge. The particulars of his case are not clear.
No comment was available from either Mr Smith or RSA.
On November 8th, 2013, RSA said it had suspended Mr Smith, chief financial officer Rory O’Connor and claims director Peter Burke, pending the outcome of an investigation into issues in the Irish claims and finance functions that were identified during a routine internal audit. At the time, it said no findings had been made against the executives.
On November 28th, RSA revealed that Mr Smith had resigned and said no severance payment had been made.
Irregularities
RSA subsequently announced £200 million worth of losses at its Irish subsidiary for the fourth quarter of 2013. This comprised £72 million from irregularities within the claims and finance functions and £128 million from the completion of the internal reserve review of the Irish business.
RSA injected capital into its Irish unit to ensure its solvency ratio was in excess of 200 per cent.
In a statement following his resignation, Mr Smith said: “My family and I have been truly traumatised by recent events and I have taken this most difficult of decisions in the best interests of my family. Resigning not only eases the stress and strain on them, but also offers me the opportunity to pursue justice outside the current flawed process which I am certain was established to arrive at a pre-determined outcome.”
Mr Smith said he had operated at all times under group direction and policy and to the “best of my professional judgment and integrity. It is my firm belief that this opinion was arrived at irrespective of my involvement or otherwise, making it impossible for me to achieve justice and fairness.”
PwC review
RSA later published details of a review by PwC into the issues at the Irish business.
Martin Scicluna, RSA's then executive chairman, said: "Our investigations have confirmed that the claims irregularities in Ireland were, in large part, the result of deliberate collaboration between a small number of executives there."
Mr O'Connor and Mr Burke also left the Irish business, while RSA's UK-based group chief executive Simon Lee resigned in December 2013.
