RSA falls sharply as it probes ‘large’ losses at Irish unit

RSA Insurance Group, the UK’s biggest non-life insurer, tumbled after suspending its Irish unit’s management, probing losses and warning it will miss targets for the second time in a week.

The stock fell 10% and yesterday slumped as much as 16%, the steepest intraday drop since Mar 2004. RSA told analysts on a conference call that it was investigating “large” losses booked in its Irish claims business and the timing of when premiums were reported over at least the previous two years.

RSA said after trading closed last week that full-year operating profit will be £70m (€83.5m), lower than analysts’ estimates, after it had to inject additional capital into the Irish unit.