RSA Group in turmoil as chief executive quits Mr Scicluna has initiated a group-wide review of its 32-country operations in a bid to enhance its troubled capital position, and expects to report his findings by the time of RSA's full-year results at the end of February. He did so as he confirmed that the 2013 final dividend is also under threat - having already cut the 2012 dividend by 33pc. Most of the group's problems stem from its Irish operations, into which it injected £70m on November 8 after discovering a capital shortfall in its claim business. But the group revealed yesterday that after a review of Irish reserves, it needs to strengthen its motoring and liability lines" capital by an extra £130m. Accountants PwC began a review of RSA Insurance Ireland in November, and that is expected to be delivered to the board by early January. On the discovery of the initial £70m hole, three executives - the chief financial officer, claims director and chief executive of RSA Insurance Ireland - were suspended on full pay. Philip Smith, the chief executive, has since resigned, claiming he was "the fall guy," but the disciplinary process for the other two men continues. Mr Scicluna told investors on a conference call that he "still believes Ireland is an isolated case" and that his review would include an assessment of the control functions of all group subsidiaries. Mr Lee, who told the board of his decision to resign on Thursday night, leaves with no additional pay-off, but will receive the equivalent of 12 months of his £824,000 salary, in monthly instalments. He became chief executive in 2011, taking over from Andy Haste, whom he had worked alongside for the previous eight years, latterly as head of RSA's international arm. Mr Scicluna has hired an external headhunter to find a replacement for Mr Lee. Analyst Barrie Cornes at Panmure Gordon said: "Profit warnings tend to come in threes, and that's proved to be the case for RSA." He has cut his profit target for 2013 by 35pc, and said there is a possibility RSA could be the "subject of a bid approach given the quality of some of its businesses, particularly Canada and Scandinavia."