Bid to allay concerns after Quinn Insurance administration

QUINN Insurance policyholders have been told not to panic after administrators were appointed to Ireland’s second largest insurance company by the Financial Regulator.

The company was placed in administration following a High Court application from the regulator which is also undertaking an investigation into “certain matters that have very recently come to light”.

While the regulator declined to expand upon those matters, it is understood that they surround the overall solvency of the Quinn Group’s general insurance business – which includes the Quinn Healthcare and Quinn Direct brands.

However, the Central Bank’s new head of financial regulation Matthew Elderfield said yesterday that it has emerged that Quinn Insurance’s financial strength has been overstated to the tune of around €450 million.

The central message – from both the administrators and the Financial Regulator – was that existing policyholders should not be overly-concerned.

The administrators said that their aim is to manage the business as a going concern “with a view to placing it on a sound financial and commercial footing”, adding that customers “are unaffected by our appointment and all valid claims will be met by the company”.

While Quinn Insurance’s two administrators – Grant Thornton’s Paul McCann and Michael McAteer – are not likely to seek a quick sale of the company, Mr Elderfield said that there is a “reasonable prospect” that they will find a suitable buyer in time. Billionaire tycoon Sean Quinn last night accused the Financial Regulator of putting 5,500 jobs at risk after it penalised his family business for a second time.

The multinational Quinn Group, headed by the entrepreneur, wrote to Government ministers claiming the watchdog acted aggressively and unnecessarily as officials walked on to Quinn Insurance company floors. The Quinn Group has reacted angrily, calling the decision “deeply disappointing” and saying the issue “could have been resolved, to the benefit of all, in a relatively short space of time” – adding that it will work with the regulator and the administrators to resolve all outstanding matters. The group claims that all of its businesses are able to meet their cash obligations, but leading industry watchdogs – the Irish Brokers’ Association and the Professional Insurance Brokers Association – have both suggested that the regulator acted swiftly.