O’Connor admitted that his conduct fell short of the standards expected of a member of CIMA, by among other things breaching the fundamental principles of integrity and objectivity when he approved materially inaccurate financial statements of RSAII for the financial years ended 31 December 2010 to 31 December 2012 (inclusive).

He is now excluded from CIMA for three years, been given a fine of £50,000 reduced to £35,000 after mitigation and a settlement discount, and agreed to pay £18,000 towards costs.

Martin Ryan, former chief actuary of RSAII and a member of the Institute and Faculty of Actuaries (IFoA), has admitted that his conduct fell short of the standards expected during the financial years ended 31 December 2009 to 31 December 2012, when he signed inaccurate statements of actuarial opinion and submitted them to the Central Bank of Ireland (or Financial Services Regulatory Authority).

The FRC has ruled that Ryan is ineligible for three years for a practicing certificate issued by the IFoA and should not act as a signing actuary during that period. He has also been fined £145,000, reduced to £101,500 after mitigation and a settlement discount, and paid £11,000 in costs.

Gerard Bradley, a former actuary with RSAII and a member of the IFoA, has admitted that during 2009 and 2010 he failed to whistle-blow and/or provide sufficient challenge regarding the operation of an inappropriate claims reserving practice within RSAII.

Bradly has been given a reprimand, fined £70,000 reduced to £45,500 after mitigation and a settlement discount, and agreed to pay £3,500 in costs.

Gareth Rees QC, executive counsel to the FRC, said: ‘These significant sanctions, including a period of exclusion and substantial fines, reflect the seriousness of the failings by these individuals and will send a strong signal to the accounting and actuarial professions of the importance of upholding high standards of professional conduct. These sanctions will also serve to protect the public and contribute to the maintenance of public confidence in the accountancy and actuarial professions.

‘It is also notable that these are the first sanctions imposed on actuaries pursuant to the FRC actuarial scheme, and they demonstrate the importance of compliance with the core principles of the actuaries code, including the obligation to speak up about, and challenge, improper conduct.’

The FRC investigation followed RSA’s discovery of problems within the claims and accounting functions at its Irish business at the end of 2013, which eventually led the insurer to pay a total of £200m into RSAII. A subsequent review by PwC, along with the company’s internal auditors and its external auditor KPMG identified losses arising from inappropriate collaboration on large loss and claims accounting, and inappropriate accounting for net earned premiums and pipeline earnings.

At the time three executives, including O’Connor and chief executive Philip Smith, were suspended and subsequently left the company.

Smith went on to take a constructive dismissal case against RSA to the employment appeals tribunal in Dublin, arguing he was being made the ‘fall guy’ for RSA’s difficulties in Ireland. That tribunal ruled he had been the victim of constructive dismissal and awarded Smith €1.25m (£800,000).

RSA appealed against the tribunal’s decision, saying it ‘fundamentally’ disagreed with the decision. In early 2016 the insurer put out a statement saying: ‘RSA can confirm that it has settled its case with former Irish CEO Philip Smith. The circuit court in Dublin has today ordered by consent that RSA’s appeal be allowed, with the effect that all findings in the earlier decision of the employment appeals tribunal have been vacated. The terms of the settlement are confidential.’