Simon Lee, the head of the Insurer RSA, has stepped down from the top job due to scandal involving the company's unit in Ireland.

RSA is planning to invest £135 million in fresh capital into the Irish unit in order to ensure that the unit meets regulatory standards for solvency and has sufficient funds to settle claims. The new investment comes after RSA invested £70 million in November after financial issues were found by the company's Irish subsidiary.

The RSA has completed a review of its Irish business and its reserves and has set aside premium income to cover possible future insurance claims. Another review, which is being conducted by consultants PwC is expected to be completed by January. Experts have said that the fresh capital investment into RSA Ireland will affect its profitability.

RSA has suspended three of its senior executives over an investigation into several issues in its claims and finance divisions that cost around £70 million to the group. The company had to inject more capital into the Irish operation due to the issue but said that no customers will be affected. Philip Smith, the chief executive of RSA Ireland, the chief finance officer Rory O'Connor and claims director Peter Burke have been suspended pending investigations.