By Ian Walker
LONDON-- Stephen Hester's efforts to turn around of RSA
Insurance Group PLC continued Wednesday, with the insurer
announcing that the head of its U.K. and Western Europe business
had agreed to resign.
Adrian Brown, who had worked for RSA for 25 years, is leaving to
join A J. Gallagher, an insurance broker, after deciding he
couldn't commit to the group's long-term turnaround plan.
Mr. Hester, the former chief executive of Royal Bank of Scotland
Group PLC, has led RSA since February. Since joining he has
launched a major fundraising and appointed new executives.
On Wednesday, Mr. Hester said Mr. Brown's departure would give
RSA the "opportunity to appoint 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," he
added.
Mr. Brown will continue in his role until a successor is
appointed and is expected by the company to leave for his new job,
as executive chairman for underwriting and distribution at A J.
Gallagher, in the second half of the year.
The management change comes after RSA said Tuesday it had
appointed Paul Whittaker to the new role of group chief operating
officer to lead the completion of its strategic disposals and
support its remaining emerging-markets businesses.
RSA issued a series of profit warnings last year after finding
its Ireland unit had insufficient reserves. Former CEO Simon Lee
and Ireland CEO Philip Smith resigned, while two other senior
Ireland executives were dismissed in January over accounting
irregularities at the unit.
Earlier this year, RSA said it would raise $1.29 billion in a
rights issue, cut dividends and sell businesses to boost its
capital cushion, which had been thinned by problems at its Irish
operations.
Write to Ian Walker at ian.walker@wsj.com
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