€100m repayment to compensation fund approved

A €100m repayment by the administrators of Quinn Insurance Ltd to the State-backed Insurance Compensation Fund, from which €1.158bn has been drawn down to date to meet claims of policy holders, has been approved by the High Court.

However, further draw- downs by the company from the fund are anticipated in early 2016, the court heard.

Arising out of the administration, some €1.158bn has been paid out of the compensation fund, resulting in a 2% levy on all non-life insurance policies. The administration is expected to end in 2016, the court was previously told.

Jane Marshall, solicitor for the joint administrators, Michael McAteer and Paul McCann of Grant Thornton, who were appointed to Quinn in March 2010, yesterday secured orders from the president of the High Court, Mr Justice Nicholas Kearns, approving the €100m repayment on or after next Monday.

In an affidavit, Mr McAteer said the administrators had in June 2012 estimated the call on the fund was likely to be between €1.1 to €1.3bn but could be as high as €1.6bn.

The administators are “increasingly confident” the ultimate call on the fund will be between €1.1bn and €1.3bn, he said. To date, €1.158bn had been drawn down.

The successful negotiation of an early release of certain escrow accounts, combined with earlier than expected realisation of a number of assets, has increased liquidity levels beyond that necessary for short to medium-term requirements, he said.

The administrators believed it was inappropriate to retain substantial moniets drawn down from the fund which are surplus to requirements in the medium term, he said.

Separately, the joint administrators are suing Quinn’s former auditors, Price WaterhouseCoopers, for around €1 billion.