RSA Insurance chief Simon Lee quits amid Irish problems

RSA Insurance have said this morning that group chief executive Simon Lee has stood down with immediate effect.

His resignation comes with the news that the beleaguered firm needs to inject a further £130m of capital into its Irish business, in addition to the £70m previously announced.

The statement released by RSA today said that Lee "will not receive any payment beyond his contractual entitlement" - the details of which it'll announce later.

Non-executive chairman Martin Scicluna will become executive chairman until a permanent replacement is found for Lee. The recruitment process is expected to take a number of months, the firm said.

Last month its Irish head, Philip Smith, resigned after RSA found "accountancy irregularities" in the unit, leading to a second profit warning.

Scicluna said:

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 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.