Michael McGrath (Cork South Central, Fianna Fail)
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43. To ask the Minister for Finance if the Central Bank was aware of any issues of concern at Irish operations of Royal and Sun Alliance prior to the company's announcement of the suspension of three senior executives after issues regarding Irish claims and finance functions were identified during an internal audit within the company itself; if the Central Bank had been or is now planning to undertake an investigation into the issues involved; and if he will make a statement on the matter. [48716/13]

Michael Noonan (Limerick City, Fine Gael)
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At the outset, the Deputy should note that in my role as Minister for Finance I have responsibility for the development of the legal framework governing financial regulation, including insurance. The day to day responsibility for the supervision of financial institutions is a matter for the Central Bank which is statutorily independent in the exercise of its regulatory functions.

The Central Bank of Ireland has had an on-going programme of engagement with RSA Insurance Ireland (RSAII) since the implementation of the Central Bank's Probability Risk and Impact System – PRISM, as it does with all high impact companies. This programme includes eight on-site inspections over a two year period and on-going meetings with key role holders such as the Chief Executive Officer, Chief Finance Officer, Chief Risk Officer, etc. The Central Bank carried out an onsite review of claims cases in RSAII in August 2013. The Central Bank identified an issue with regard to delays in increasing case reserves on large claims in a timely manner and this informed the terms of an internal audit that RSAII had already scheduled in relation to the same area.

RSAII brought the findings of the internal audit report to the attention of the Central Bank as soon as they became known. The terms of reference for a further multi-stranded investigation and review were outlined to the Central Bank as were the interim measures that the company planned in relation to the executive team. Further additional measures felt necessary by the Central Bank were incorporated by RSA into its actions. PWC have been onsite in the RSAII since the week before last as part of this investigation.

The RSA Group provided an injection of €100m in capital last week after discussions with the Central Bank. The RSA Group has assured the Central Bank that it will provide any further capital required should it be necessary at the end of the current investigation. The Central Bank has not had to take direct supervisory measures due to the swift and prompt action by RSA and its on-going engagement with the Central Bank. The Central Bank will continue to liaise with RSA Ireland, PWC and other stakeholders to ensure that all matters identified are resolved to the Central Bank's satisfaction.