RSA’s chief executive Stephen Hester has turned down the heat over his £5.7 million pay and bonus package after the insurer reported an increase in premium income in the first quarter.
The trading update comes only a day ahead of the More Than owner’s annual meeting, at which the ex-RBS boss could be prevented from picking up the generous package.
RSA said that operating profit and underwriting performance were up on the same period last year, but the improvements were moderated by the impact of a strong pound.
Shareholders are angry that RSA promised Hester a bonus worth three times his salary, where the normal ceiling for senior executives has been 230% of salary.
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Hester was recruited last year from RBS to revive the fortunes of the insurer which had plummeted to a loss in 2013 after an accounting scandal that year in its Irish division.
Rival insurer Aviva said its turnaround was “ahead of schedule” after new business rose by 14% to £247 million in the first quarter.
The company, which bought rival Friends Life last month, also saw improvement in its general insurance business.
