RSA top exec quits amid shake up at insurer

A top executive at RSA has resigned as the embattled insurer prepares to set out a new strategy following the discovery last year of a capital shortfall in its Irish business that led to a shake-up of its management team.

Adrian Brown, head of the UK and Western Europe, has resigned from RSA after 25 years, just months after former Royal Bank of Scotland chief executive, Stephen Hester, was brought in as chief executive in the wake of the Irish problems.

Mr Brown is set to join insurer broker AJ Gallagher as its executive chairman and resigned yesterday with immediate effect from RSA’s board. He will remain in his current job until a replacement has been appointed.

“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,” said Mr Brown.

Mr Hester said: “For Adrian, this move to the broking industry represents a fresh challenge at which I believe he will excel.”

He added: “For RSA it provides the opportunity to appoint a new leadership in this key part of our business. We have an ambitious business plan which now needs to be driven over a time horizon that Adrian could not reasonably commit to.”

The departure of Mr Brown marks the second senior management change at RSA this week after the promotion on Tuesday of Paul Whittaker, currently head of emerging markets, to the new role of chief operating officer.

The losses in its Irish arm forced RSA to scrap its dividend and the business is attempting to raise £748m through a discounted rights issue to existing investors.

On top of this, Mr Hester is planning a series of disposals and cost cuts aimed at raising a further £750m.

Last year, the insurer reported a loss of £244m, which was largely driven by a £220m fraud in its Irish business, which led to the resignations of its senior management in the country, as well as the departure of group chief executive, Simon Lee.