NEWS: RSA is appealing the decision of the Employment Appeals Tribunal which found in former Irish CEO Philip Smith's favour


RSA announced today that it is appealing the decision of the Employment Appeals Tribunal which found in former Irish CEO Philip Smith's favour. RSA fundamentally disagrees with the judgement and is seeking redress through the Courts.

RSA believes the Tribunal decision fails to appreciate:

The critical role of reserving for claims in an insurance company and the fundamental importance of setting accurate case reserves in accordance with the company's legal and accounting responsibilities;
RSA's obligations as a regulated financial institution, including its duty to provide any information reasonably requested by the Central Bank of Ireland and to do so without delay; and
The fact that RSA Ireland is part of a publicly listed Group and was required to immediately announce to its shareholders any material changes to the business or its performance.
Derek Walsh, RSA Group General Counsel, said:

'We believe the Tribunal has reached conclusions which were not supported by the evidence and which demonstrate a serious misunderstanding of and a failure to grasp the key issues. It did not recognise the enormity of its finding that Mr Smith was aware of the reserving practices within RSA Ireland which involved 'a potential breach of Central Bank regulations'. We are astonished by the amount of the award made by the Tribunal which RSA believes is utterly inconsistent with that crucial finding and creates a dangerous precedent.

'Contrary to the impression given by the Tribunal decision, no one at RSA Group level had any prior knowledge of the inappropriate large loss reserving practices which emerged in RSA Ireland. RSA Group would never have condoned such practices.

'We conducted an appropriate investigation into what were very serious issues and deny that any outcome in relation to Philip Smith was in any way pre-determined. We also refute any suggestion that the evidence which emerged from numerous employees in Ireland concerning Mr Smith's management style and behaviours was not given on a voluntary basis.

'We continue to believe that Mr Smith's case is without merit and in the circumstances have no option but to appeal the judgement.'

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