Quinn posts €706m losses for 2009

Quinn Insurance has reported losses of €706m for 2009.

The insurer, under administration since last year, is blaming the massive losses on problems in the UK market and a write-down in the value of assets there.

The announcement comes as an agreement is signed to sell Quinn Insurance to US insurance giant Liberty Mutual, and Anglo Irish Bank.

The company, to be know as Liberty Mutual Direct Insurance, said it will now be forced to seek a total of €600m from the Insurance Compensation Fund, €180m of which will be needed this year.

Liberty Mutual Direct Insurance said 25% of profits generated in future would be used to pay back the fund, but the immediate shortfall looks likely to be met by taxpayers in the form of a new car and house insurance levy.

In a statement the Central Bank said Quinn's requirement to access fund is not unexpected.

The bank said it will review the finances of the fund before making a recommendation to Finance Minister Michael Noonan.

It added that any levy imposed will apply to non-life insurance companies.