1,500 jobs saved as US insurer steps in
Published 15/11/2011 | 05:00
A TOTAL of 1,500 jobs in Quinn Insurance businesses here have been saved after the company's sale to US insurer Liberty Mutual.
The sale to the Liberty Mutual/Anglo Irish Bank joint venture was completed last Friday, the High Court was told yesterday.
The healthcare division -- which employs up to 300 people -- is still on the market. State-owned Anglo will have no day-to-day role in the insurance business founded by Sean Quinn -- but is still planning to recover some of the money it loaned.
The sale means €738m of public money will be paid out of the State's Insurance Compensation Fund to the insurer, including an immediate payment of €320m to facilitate the sale. The remainder is to be paid at a later date, subject to applications to the court.
The joint administrators of Quinn Insurance Ltd, Michael McAteer and Paul McCann, had previously told the court the alternative to the proposed sale was liquidation of the insurer with a deficit of some €1,300m and more than 1,500 job losses.
The company will continue to trade as Quinn Direct and Quinn Insurance, but a new brand name is expected to be introduced by Liberty Mutual next year.
As part of a transitional services agreement, business will be controlled by the joint administrators but managed by Liberty Mutual.