Quinn criticises 'aggressive and unnecessary' move by Regulator
The Quinn Group today blasted as “pre-emptive, aggressive and unnecessary” yesterday’s move by the Financial Regulator to appoint provisional administrators to Quinn Insurance.
In a statement the Fermanagh-headquartered company said it believed the Regulator “had made the wrong decision”.
Provisional administrators Paul McCann and Michael McAteer of Grant Thornton were yesterday appointed as joint administrators to Quinn Insurance after the High Court in Dublin granted a dramatic request from the Head of Financial Regulation Matthew Elderfield.
The Regulator claimed there were serious concerns over solvency levels at Quinn, Ireland’s second biggest insurer, if it was hit with an influx of claims.
Issues have been raised over an apparent €448m black hole in the insurer’s assets after values were devastated over the last year.
But Quinn said the effective high-profile state control had put its business at risk and would ultimately threaten jobs.
“The Financial Regulator has justified his actions on the grounds of ‘certain matters within QIL (Quinn Insurance Ltd) that have very recently come to light’”, today’s statement said.
“We understand that he is referring to guarantees provided by certain subsidiaries of QIL, some dating back to 2005, supporting the general indebtedness of the Quinn Group.
“These guarantees are entirely lawful, do not breach any insurance regulations, and were fully disclosed in the statutory accounts of the relevant companies”
Quinn Group, headed by entrepreneur Sean Quinn, said it was in the process of negotiating a refinancing which would have addressed the concerns of the Regulator.
“We and our financiers remain confident that this will be achieved,” the statement continued.
“Therefore, the Regulator’s analysis that these guarantees give rise to a €448m liability is totally incorrect.”
“Even if the Regulator’s concerns in relation to QIL were well-founded (which we dispute), it is extraordinary that the Regulator was unwilling to give the necessary time to work through those concerns, rather than taking precipitate action which damages the interests of all stakeholders, including the State.”
The company reiterated that it was “business as normal” at Quinn Insurance and it was fully able to meet all of its payment obligations.
“Policyholders of Quinn-Direct, Quinn Life and Quinn Healthcare, and staff, customers and suppliers of the entire Quinn Group, should continue to deal with us as usual.”
Formed in 1973 by chairman Mr Quinn, the Quinn Group’s headquarters are in Derrylin, Co Fermanagh. The group has successfully diversified over the years into cement and concrete, glass, radiators, plastics, hospitality and property.
It employs 5,500 people in Ireland of which 2,700 are employed in QIL.
