Business Irish

Tuesday 20 February 2018

Employees at Quinn want Liberty deal to go ahead


Most of Quinn Insurance's 1,600 workers are anxious that the proposed sale of the insurer to US firm Liberty Mutual goes ahead because they believe it will safeguard their livelihoods, the High Court heard yesterday.

But two groups representing Quinn policyholders and others expressed concerns that the deal would involve the transfer to Liberty of parts of the business only -- together with only the employees attached to those parts -- while the taxpayer would be left to fund the "husk" of the business for years to come.

Both groups -- Concerned Irish Citizens and Concerned Irish Business -- stated that the court had not been given enough information about the proposed deal by the insurer's joint administrators. Their lawyers asked the court to direct that sufficient information be given to the court, including details of an asset purchase agreement.

Mr Justice Nicholas Kearns began hearing the administrators' application for approval for the sale to a joint venture of Liberty and Anglo Irish Bank.

The sale proposals require a total €738m of public money to be paid out of the State's Insurance Compensation Fund to the insurer, to be funded by a 2pc levy on all insurance policyholders in the State.

The hearing continues today.

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