independent

Friday 18 April 2014

Quinn Insurance pre-tax losses at €118m before sale

PRE-tax losses at Quinn Insurance Limited fell to €118m in the last year before the business was sold, accounts show.

The 2011 accounts were signed off by Paul McCann and Michael McAteer, the joint administrators appointed by the High Court to run the troubled business. The accounts are for the last year before the bulk of the insurance company was sold to US investor Liberty.

That happened after the company had been placed in administration in March 2010.

The number of claims it handled fell to €700m in 2011, down from €1.85bn the previous year, according to the accounts.

Taxpayers have had to foot the bill for costs at the scandal-hit insurance company through the state-funded Insurance Compensation Fund (ICF).

Consumers face levies for up to 15 years to cover the cost.

The amount expected to be drawn down from that could reach as high as €1.65bn.

As of early December, the total amount drawn down from the ICF stood at €808m, according to the latest accounts.

The Department of Finance confirmed to the Oireachtas Finance Committee in October that it expected at a "best estimate" that the call on the State's insurance compensation fund would be €1.1bn, requiring a 2pc levy on all home, motor and commercial insurance policies for 15 years.

Quinn Insurance ceased to write any business in Northern Ireland or in Britain in September.

It was due to cease taking on new business anywhere last month, the accounts show.

Meanwhile, the latest accounts for Quinn Property Holdings, a subsidiary of Quinn Insurance, show that losses on ordinary activities before tax amounted to €6.8m compared with a profit of €151m in 2010.

The accounts show that, on completion of the sale to Liberty Insurance, Quinn Insurance, from funds provided by Quinn Property Holdings, paid €80m to the Quinn Group for banks and other lenders, and issued a promissory note in the amount of €121m.

Irish Independent

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