Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

RSA plunges as boss quits on third profits warning

RSA plunges as boss quits on third profits warning

The FTSE 100 edged higher providing some relief from the downward momentum of the past six weeks but all eyes were on RSA Insurance Group as the insurer plunged following the sudden resignation of its chief executive.

RSA Insurance Group (RSA.L) shares dived 17% or 18p to 82p after Simon Lee (pictured) stepped down following a third profits warning that confirmed investors' fears of a possible hit to the dividend from the problems in its Irish business.

Chairman Martin Scicluna, who will take on an executive role while Lee's successor is found, said the group would strengthen its reserves by £130 million and pump a similar amount of capital into RSA Insurance Ireland after a review of the division.

Combined with the £25 million in storm damage claims that would be mean a further reduction in 2013 profits, it said. It added that these factors would be taken into account when considering the final dividend for the year.

Shares in RSA have fallen by over a third in 2013, in part because of an unpopular dividend cut by Lee earlier in the year.

The FTSE 100 gained 12 points or 0.2% to 6,456 after yesterday's retreat. Strong recent economic data from the US has inclined more investors to think that the Federal Reserve may start to 'taper' its extraordinary stimulus policies as early as next week.

Chip designer ARM Holdings (ARM.L) led the index, up 4.4% to £10.15 followed by Sports Direct International (SPD.L), recovering 3% after yesterday's slide.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter