Quinn Group: 'No basis' for €700m cash-injection figure

Quinn Group has said there is "no basis" for the speculation that its insurance business needs an injection of €700m.

In a statement this afternoon, the group estimates that its insurance business needs an injection of between €100 and €150m in order to meet the Financial Regulator's solvency requirements, and is "not required to pay claims, or fill any other holes".

"Prior to being placed in provisional administration, Quinn Insurance Limited (QIL) had assets exceeding liabilities of €230m, ie surplus assets above what is required to pay claims and discharge other liabilities.

"This exceeds the EU minimum requirement, albeit not meeting the Financial Regulator requirement of 150% of the minimum, due to the impact of losses on property write-downs and investments over the past two years of over €220m."

The company said there was therefore "no basis" for the €700m deficit figure which is in circulation.

"Both QIL and the group are highly liquid, QIL has over €800m of cash available, Quinn Group has cash reserves of €70m and the group generated cash profits of circa €47m in the first quarter of 2010," the company said in a ststement.

The statement came as executives at Anglo Irish Bank met the Financial Regulator to discuss its proposal to invest €700m in Quinn Group.