The head of the Irish unit of the RSA Insurance Group said he had resigned amid an internal probe conducted on the insurance firm's accounting practices. RSA Insurance is a global commercial insurance company whose products include property, liability, automobile and specialty insurance.

Chief Executive Officer Philip Smith said he was made the fall-guy. Smith told Bloomberg through email, "My family and I have been truly traumatized by recent events and I have taken this most difficult of decisions in the best interests of my family." Smith said resignation gave him the opportunity to obtain justice outside the process which he called flawed.

Smith became the Chief Executive Officer of the Irish business of RSA in 2007. On November 8, he and two other executives were put on leave as the unit became the subject  of an investigation for its accounting processes. According to a Bloomberg report, the RSA infused EUR 100 million or USD 136 million capital into the business on the same day so that it's solvency ratio would remain above 200%. The solvency ratio is a measure of a company's capacity to absorb losses.

RSA spokesman Jon Sellors, who is based in London, did not comment on the news when asked by Bloomberg through phone.

After the internal investigation was announced on November 8, RSA shares have dropped 12%. This year, the shares of the London-based insurer had plunged 15%, putting the insurance company's market value at GBP 3.9 billion or USD 6.4 billion.

According to the Bloomberg report, the Britain-based insurance company is probing whether the Irish business reported the premiums paid to the firm earlier than it should have. Doing so would reportedly increase its profitability. The investigation also looked at the timeframe when the Irish business set aside its reserves for insurance claims.

Smith said that he had served the business well. He added that the unit operated under group direction and policy at all times to the best of his professional judgment and integrity.