Business Irish

Thursday 22 February 2018

RSA still suffering fallout with €171m loss

RSA recorded pre-tax losses of €171.26m last year
RSA recorded pre-tax losses of €171.26m last year

Gordon Deegan

The fallout from financial and claim irregularities at the the country's largest insurer, RSA, contributed to the firm recording pre-tax losses of €171.26m last year.

New accounts just filed by RSA Insurance Ireland Ltd with the Companies Office show that the firm recorded the pre-tax losses after revenues from gross premiums reduced by 5pc to €385.66m.

The irregularities identified resulted in RSA's parent strengthening reserves injecting capital of €262m into the firm in 2013.

This was followed by separate injections of capital totalling €137m last year, bringing to €399m in overall capital injections.

Last year, RSA Insurance appointed a new executive team and the pre-tax loss last year at the firm was 33pc down on the pre-tax losses of $257.6m in 2013 showing that the combined losses over the two years is €428m. The amount in claims incurred, net of re-insurance, last year reduced sharply from €505.9m to €394.65m.

The firm last year incurred €48.77m in exceptional costs around restructuring, remediation and impairment of intangible assets.

The exceptional costs include restructuring costs of €12.43m relating to a voluntary redundancy programme and the numbers employed at the firm last year reduced by 58 from 532 to 474.

Irish Independent

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