The share price of insurance company RSA has dived today (November 11th) after the company suspended the chief executive of RSA Ireland.
Philip Smith and two other executives at the firm were suspended, but the firm did not reveal the reasons behind it.
Group chief executive Simon Lee stated that the problems at the company could harm operating results by as much as £70 million in 2013.
"We are extremely disappointed with the issues which have been identified and their financial impact on the Group," he said in a statement.
Mr Lee added no policyholders have been affected and stressed issues were contained to RSA Ireland, though he did not give any more details.
At 12:05 GMT, the share price of RSA – which owns brands such as More Than – was down by around nine per cent compared to the start of the session.
However, stocks had bounced back from earlier in the day, when they were as much as 14 per cent lower.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.