Business Irish

Wednesday 18 October 2017

Deloitte quit role at RSA in May

Nick Webb and  Charlie Weston

Deloitte resigned as auditor of the scandal-hit insurer RSA (Royal Sun Alliance) last May, according to filings made in the Company Registration Office.

Last Friday, it emerged that RSA Ireland had suspended chief executive Philip Smith and two other senior executives after discovering an €83m black hole, which was blamed on under-provisioning. The issues were uncovered during an internal audit three weeks ago.

RSA's parent company in the UK dispatched 10 investigators to review the finances of the Dundrum-headquartered firm. The Central Bank was informed by RSA three weeks ago.

The Central Bank received regular quarterly reports from the insurer detailing its financial position.

RSA Ireland has injected an extra €100m into its balance sheet to guard against any potential solvency issue.

The firm has described the revelations as an "accounting procedural issue".

Sunday Independent

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