RSA chief quits as problems grow

RSA’s chief executive Simon Lee has quit after the insurer warned on profits for the third time in six weeks, prompting the chairman to initiate a review that could lead to the sale of part of the business.

RSA’s troubles stem partly from accounting problems at its Irish business, which the insurer yesterday said needed another £130m (€154m) to plug a capital hole, on top of the £70m identified in November.

The resignation of Mr Lee, who leaves with a one-year pay packet of £824,000, caps a difficult year for Britain’s largest general insurer. It cut its dividend in February because of weak investment returns and has underperformed its European peers, such as Aviva and Italy’s Generali, this year by about 40%.