Administrators appointed to Quinn Insurance companies
IRISH TIMES REPORTERS
The High Court has this morning appointed provisional administrators to Quinn Insurance, owner of Quinn Direct and Quinn Healthcare, on an application by the Financial Regulator.
Mr Justice John Cooke installed Paul McCann and Michael McAteer of Dublin accountancy firm Grant Thornton joint provisional administrators to the company in the High Court this morning after the Financial Regulator expressed serious concerns about the finances of the company and how it was being managed.
This in effect means that the State through the Central Bank and Financial Regulator has taken control of the country’s largest insurance company.
A spokesman for Quinn Group, the owner of Quinn Insurance, said that the company had no comment to make.
Lawyers for the regulator told the court it had been discovered that subsidiaries of the company had made guarantees in relation to the group’s assets in 2005 which has reduced the value of the assets by €448 million. Some directors of Quinn Insurance were unaware of the guarantees, lawyers for the regulator said.
The court heard the company had significantly breaches its solvency ratios. The company had moved from a position where it had an excess of assets over liabilities of more than €200 million to a position where it had €200 million of liabilities over assets.
The application was made by the regulator under the Insurance (No 2) Act 1983 this morning during a vacation sitting of the court. The act allows for a provisional administrator to be appointed on an ex parte application, meaning only one side was represented.