Former RSA Insurance chief executive takes dismissal action

Former RSA Insurance Ireland chief executive Philip Smith has told the Employment Appeals Tribunal that more than €250 million of reserves at the Irish business was used to support the results of its UK-based parent company between 2007 and 2011.

He said this left the reserves of the Irish business in a “parlous state” and he had “no doubt” that this contributed to the reserving and claims difficulties that emerged at RSA Ireland in 2013. He said RSA Ireland’s parent company considered its reserves as “treasure in the Irish caves to be used as the group saw fit”.

Mr Smith is taking a constructive dismissal case against RSA. He joined RSA in 2006 from Accenture and served as chief executive from 2007 to November 2013.

On November 8th 2013, RSA suspended Mr Smith pending the outcome of an investigation into issues in the Irish claims and finance functions that were identified during an internal audit. At the time, it said no findings had been made against the executive.

On November 28th, RSA revealed that Mr Smith had resigned and said no severance payment had been made. Mr Smith claimed at the time that he was being made the “fall guy” for RSA’s difficulties in Ireland.

The hearing was told this morning that Mr Smith had an exemplary employment record with the company and was offered promotions abroad within the group but declined them for family reasons.

It was also noted that a large number of internal, external and Central Bank audits during his time as CEO were all “satisfactory” save for “relatively minor and technical issues”.

RSA has yet to be heard at the tribunal but said previously that it would fight Mr Smith’s claims “tooth and nail”.

The EAT hearing, which is being chaired by Niamh O’Carroll-Kelly, has set aside five days for the hearing. Mr Smith is expected to give evidence for at least two days.