Where to next for QIL bidding?
Published 19/01/2011 | 05:00
THE Quinn Insurance administrators are hoping to select a preferred bidder over the coming weeks.
As things stand, the field has been narrowed to a joint bid by Anglo Irish Bank and US giant Liberty Mutual, and one or two other bids from international insurers.
The Quinn family are hoping the field will be broadened to include an Anglo/Quinn family bid.
If Anglo/Liberty wins the bidding, Quinn Insurance is likely to be kept intact as a standalone company with headquarters in Cavan, but there are fears that some business lines and regions will be cut.
If Quinn Insurance goes to an international insurer there are fears that the business may be split up, with the new buyer taking on the existing customer book but not the claims built up by policyholders.
This could result in a levy being charged on every general insurance policy in Ireland, if the assets of Quinn Insurance aren't enough to eventually meet those claims.
The Anglo/Quinn family bid would keep Quinn Insurance fully operational with minimal job losses. Crucially, the bid would also enable the Quinns to repay a €2.8bn debt to Anglo over seven years.