Stephen Hester appointed RSA Group Chief Executive

PUBLISHED BY CARMEN WHITELOCK (CARMEN.WHITELOCK@GCC.RSAGROUP.COM) ON TUESDAY 4TH FEBRUARY 2014

RSA Insurance Group plc (RSA) today announces the appointment of Stephen Hester as Group Chief Executive and a Director of the Company with immediate effect.

Martin Scicluna, Chairman of RSA, who has been acting in an executive capacity pending the appointment of a Chief Executive, will revert to Non-Executive Chairman.

Stephen was most recently Chief Executive Officer at Royal Bank of Scotland (RBS) where he successfully led the UK’s largest ever corporate restructuring and recovery programme.

With over 30 years’ experience in financial services and FTSE 100 businesses, Stephen has also served as Chief Executive of The British Land Company plc, Chief Operating Officer and Finance Director of Abbey National plc and held a number of senior roles at Credit Suisse First Boston in the UK and US.

Martin Scicluna, Chairman of RSA, said:

“I am extremely pleased that Stephen is joining RSA as our new Chief Executive. He is an exceptional business leader with extensive global financial services expertise. He has an outstanding track record of transforming the performance of businesses, bringing new energy and focus and implementing a challenging agenda to ensure significant value is delivered for customers and shareholders.

“His appointment follows a comprehensive global search process which produced a shortlist of excellent candidates. He has the unanimous support of all of the Directors and we are confident that, with the support of the Board and the Executive Team, he will work quickly to take the Group forward.”

Stephen Hester, said:

“I am delighted to be asked to lead RSA, an organisation with a 300-year heritage. RSA has grown into a global insurer with market leading businesses, talented and engaged staff and long-standing partners and customers.

"However, the challenges of recent months have demonstrated that we have not lived up to our stakeholders' expectations and performed to our true potential. We have an obligation to deliver shareholder value and excellent products and services that provide everyday protection for our customers.

“I look forward to getting started immediately and working closely with the Board on the business review to ensure that we are able to deliver strength and value to all of our stakeholders and re-emerge as an attractive solidly performing Group.”
 

– ENDS –


Notes to editors

  • In accordance with paragraph LR 9.6.13R of the listing rules, RSA confirms there is no information to be disclosed in terms of LR 9.6.13R (2) to LR 9.6.13R (6) inclusive in respect of Stephen Hester. Information in respect of LR 9.6.13R (1) is set out below.
     
  • At the date of this announcement, Stephen Hester has no beneficial interests in ordinary shares of RSA.
     
  • Stephen Hester’s appointment has been approved by the Prudential Regulation Authority and Financial Conduct Authority.
     
  • RSA remains on track to announce the outcome of its business review at its Full Year results on 27th February.
     
  • The RSA media centre at news.rsagroup.com includes images, company and product information and a news release archive.
     
  • Follow us on twitter: @rsagroup.
     
  • Follow us on LinkedIn: linkedin.com/rsainsurance.
     
  • Read profiles on RSA's Board Directors


Key compensation arrangements

Stephen has been appointed on an annual salary of £950,000. No sign-on payments or other similar exceptional, compensatory remuneration will be paid.

His annual incentive opportunity will be set in the same ranges as existing Executive Director policy, linked to the achievement of the bonus plan's targets. Fifty per cent of any bonus award must be deferred into RSA shares for three years.

Subject to the Group’s remuneration arrangements receiving shareholder approval at the 2014 AGM, he will be granted an opportunity over shares in the long-term incentive plan (LTIP). His first grant in 2014 will have a face value equivalent to 300% of salary, and successive annual grants will be made no higher than 230% of salary. All LTIP shares are based on the achievement of stretching performance conditions measured over three financial years; there is no assurance that they will vest either in whole or part. When vested, all shares must be held for a further two years.


Biographical information on Stephen Hester

Stephen was appointed Chief Executive Officer of The Royal Bank of Scotland Group plc in October 2008 to lead the largest ever corporate restructuring and recovery programme. He resigned as a director with effect from 30 September 2013.

Prior to RBS, Stephen was Chief Executive of British Land plc from November 2004 to October 2008.

He was previously Chief Operating Officer of Abbey National plc, having joined in May 2002 as Finance Director.

For the first 19 years of his career, between 1982 to 2001, Stephen held a number of senior roles at Credit Suisse First Boston in London and New York. These included Chief Financial Officer, Global Head of the Fixed Income Division and co-Head European Investment Banking.

He is a trustee of The Royal Botanic Gardens, Kew Foundation.

He was born in 1960 and holds a first class degree in Politics, Philosophy and Economics from Oxford University.


Enquiries

Analysts & Investors

Press

Matt Hotson

Louise Shield

020 7111 7212

020 7111 7047

07711 956 077

07786 114 662

matt.hotson@gcc.rsagroup.com

louise.shield@gcc.rsagroup.com

 

 

Rupert Taylor Rea

Jon Sellors

020 7111 7140

020 7111 7327

07881 677 400

07711 701 806

rupert.taylorrea@gcc.rsagroup.com

jon.sellors@gcc.rsagroup.com


About RSA

With a heritage of over 300 years, RSA is one of the world’s leading multinational quoted insurance groups. RSA has major operations in the UK, Scandinavia, Canada, Ireland, Latin America, Asia and the Middle East and Central and Eastern Europe and has the capability to write business in around 140 countries. Focusing on general insurance, RSA has around 23,000 employees and, in 2012, its net written premiums were £8.4 billion.


Important disclaimer

This press release and the associated conference call may contain ‘forward-looking statements’ with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition, performance, results, strategic initiatives and objectives. Generally, words such as “may”, “could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “aim”, “outlook”, “believe”, “plan”, “seek”, “continue” or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group’s control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group’s forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.


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