Simon Lee, Group Chief Executive of RSA has tendered his resignation to the company, it has been revealed this morning.
The news follows the announcement by the insurance firm that it has completed its review of Irish reserves as referenced in its interim management statement last month.
The group’s Irish reserves will now need to be strengthened by £130m, according to RSA, in addition to the £70m previously announced on 8 November.
The group plans to inject £135m of capital into its Irish operations to ensure that it meets solvency guidelines.
RSA Chairman Martin Scicluna said that the former CEO felt it was in the best interests of the Group that he step down “to enable a change in leadership”.
“The significant reserve strengthening in Ireland represents a further negative event and places additional strain on the capital metrics of the Group. The impact of this reserve strengthening, alongside the extreme weather in 2013 and the effect of financial irregularities in Ireland will be taken into consideration in the Board's dividend decision in February,” he added.
This latest development follows the resignation Philip Smith as chief of RSA Insurance in Ireland after suspension from the company amid serious financial allegations.
According to the announcement released by RSA this morning, Martin Scicluna will become Executive Chairman for the group and the search for a new Group Chief Executive is underway.
RSA shares slumped 18pc - wiping around £500m from its stock market value - following Mr Lee's resignation and the latest profits warning.