Ex-BoI chief Goggin in €250m insurance buyout
BRIAN Goggin, the former Bank of Ireland boss who retired with a €650,000 pension as the bank crashed onto the rocks, is involved in deals on the buyout of nearly €250m of insurance policies from financial institutions.
Goggin is a director of Financial Credit Investments, which is linked to Wall Street private equity giant Apollo, with one of its rainmakers also serving as a director. The former BoI boss joined the board in December 2010 as Ireland lurched into the IMF/EU bailout caused by the banking crisis. Shares in the company are held by Deutsche International Finance.
The company, described as a "special purpose securitisation vehicle", is involved in seeking "long-term returns" by investing in life insurance settlement contracts. This is where big blocks of life insurance policies are sold off to third parties for more than the cash surrender value but less than the value of the final payout.
Last year Financial Credit Investments realised gains of almost €19m from its complex financial dealings. It was involved in the issue of a €174m profit participation note to a Cayman partnership, and issued €162m in other notes last December. An arrangement with Deutsche Bank Trust Company Americas means that the Goggin firm is now authorised to issue up to €730m of these financial instruments. Filings show that at the end of 2011, the buyout vehicle held insurance contracts worth €245m.
During the year, Financial Credit Investments borrowed about €88m from lenders to finance "a portion of the company's acquisition costs of the portfolio of life insurance policies owned by the company."
Goggin departed Bank of Ireland in 2009, soon after giving an infamous interview to RTE when he told viewers that he would be paid about €2m. The taxpayer pumped €3.5bn into Bank of Ireland to keep it afloat after Goggin's retirement.
Sunday Indo Business