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RSA UK And Western Europe Chief To Depart For Broking Role(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - RSA Insurance Group PLC Wednesday said the Chief Executive of the business which houses its troubled Irish operations has resigned in order to become Executive Chairman, underwriting and distribution, at business partner A J.Gallagher. In a statement, RSA said UK & Western Europe Chief Executive Adrian Brown has resigned from the board but will carry on in his executive role until a successor is found. No departure date is currently set in stone but RSA said it expects Brown to leave in the second-half after 25 years at the FTSE 100 insurer. UK & Western Europe, which is one of RSA's four main regions, includes the insurer's Irish operations, which in 2013 required a significant capital injection from the group after accounting irregularities and mounting claims resulted in a GBP200.0 million capital hole in the business. RSA was forced to launch a GBP773.0 million rights issue as part of a package of measures, including the scrapping of its dividend, a cover policy underwritten by Berkshire Hathaway, and plans to raise GBP300 million from business disposals in 2014, in order to shore up its balance sheet in the wake of its problems in Ireland. Former Chief Executive Simon Lee and the former Chief Executive of RSA Ireland, Philip Smith, have already resigned since the scandal was first revealed. Brown took charge of the Irish business on an interim basis in the wake of Smith's resignation on November 29. Stephen Hester, the former RBS Chief who replaced Lee in early February, said a move to the broking industry represented a "fresh challenge" for Brown, but said the departure gives RSA the chance to appoint a new leader to a key part of the business. "We have an ambitious business plan which now needs to be driven over a time horizon that Adrian could not reasonably commit to. There is a strong and valued team in place in the UK with many initiatives underway to build on our existing business and improve further. I look forward to working closely with Adrian and our team in the coming period to ensure a successful transition," Hester said in a statement. Brown echoed those sentiments. "I have led the UK business for almost seven years and the time is right for me to take up a new challenge and for the business to seek fresh leadership. I am confident that the foundation and talented colleagues are there to keep the business moving forward. I will remain fully engaged in the coming weeks with business as usual and in due course look forward to continuing a strong relationship with RSA in my new role," Brown said. RSA shares last traded at 40 pence per share. Copyright © 2014 Alliance News Limited. All Rights Reserved. |