Tuesday 5 February 2019 3:35 pm

RSA UK chief executive out after poor financial performance

The insurer RSA has replaced the chief executive of its UK and international division following poor financial performance.

Steve Lewis, UK and international chief executive since January 2015, is leaving the business and being replaced by group chief financial officer (CFO) Scott Egan.

Group chief executive Stephen Hester said: "I'd like to thank Steve for his service to RSA over the last four years, leading a comprehensive restructuring of our UK&I businesses. In this period there have been some notable successes, although UK results in 2017 and 2018 have disappointed, particularly due to 'London Market' losses in areas now subject to the portfolio exits announced last year.

“In Scott we have a strong successor to Steve, who knows the business well and has broad experience in UK general insurance. Scott has done an excellent job as CFO at RSA since joining and I look forward to working closely with him in his new capacity."

Read more: RSA Insurance shares drop as firm warns torrid weather will hit profits

In its third quarter trading update in September RSA said full-year underlying pre-tax profits for 2018 were likely to be lower than 2017 due to "elevated weather costs".

The More Than-owner said it made an underwriting loss of £70m after the weather brought about more claims from customers.

Speaking at the time Hester said: "Our UK and 'London market' business reported an underwriting loss which is disappointing. Actions to improve in the UK are well underway and we are determined to restore satisfactory performance whilst continuing our progress internationally."

RSA said today that recruitment for a new finance boss was underway with the appointment expected to be announced in the coming weeks.

Egan said: “The UK&I region has undergone substantial transformation in recent years. Many of the fundamentals are in place and I look forward to working alongside my UK&I colleagues to ensure the region maximises its contribution to RSA's ongoing success."

RSA's shares were up half a per cent at 517p.