Hi °C | Lo °C The Republic's financial watchdog has been given the findings of the joint administrators' investigation into alleged breaches of insurance regulations by Quinn Insurance, the High Court in Dublin heard.
Administrators Michael McAteer and Paul McCann yesterday presented their fourth report to the President of the High Court, Mr Justice Nicholas Kearns, since the Financial Regulator Matthew Elderfield put the insurer into administration in March.
Quinn Insurance is part of the 'cement to hotels' Quinn Group of companies established by Co Fermanagh tycoon Sean Quinn.
Yesterday the counsel for the administrators said his clients are happy with the way the administration process is progressing.
Counsel said the administrators have been keeping a tight eye on the companies solvency ratios, and that Quinn will not have to avail of the Insurance Compensation Fund, which was set up by the Government to protect policyholders if an insurer cannot meet their liabilities.
That process, to sell the insurance group, has now entered its second stage, in which Quinn's non-executive directors are to be replaced with independent directors, counsel said.
The administrators, in their report to the court, elements of which are confidential for commercial reasons, said more than 800 redundancies required from the workforce of 2010 will be achieved through voluntary redundancies and natural wastage.
The bankers hired to sell the group originally identified 90 prospective buyers, counsel said.
That number was reduced to 11 before the commencement earlier this month of the second phase of negotiations, he said.
Among the confidential elements was a section of the report dealing with the solvency of the insurer, the number of prospective buyers involved in the process to sell the insurer and when the process would be complete.
Counsel said that overall business in Ireland has improved and that Quinn's UK motor insurance business has also been going well. While the regulator had stopped Quinn from underwriting commercial insurance in the UK, he had allowed them to continue to provide insurance to one single large unnamed client.
