We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Michael Noonan in the Dáil this morning Screengrabs via Oireachtas TV

'They have a handle on it': Noonan plays down fears over RSA Insurance

“The Central Bank are happy now that they have a full handle on it,” Michael Noonan has told the Dáil this morning.

FINANCE MINISTER MICHAEL Noonan has insisted that RSA will meet any further shortfall in its capital requirements following recent problems at the insurance firm.

Noonan was responding to questions in the Dáil about the problems that have arisen at RSA as well as other issues connected to his portfolio.

Earlier this month the insurance firm, which operates, suspended three executives pending the outcome of an investigation into issues with their claims and finance operations.

The UK parent of RSA has had to inject €100 million of capital into the company following the discovery of a shortfall as part of a routine audit.

“The RSA brought the findings of the internal audit to the attention of Central Bank, then the RSA group took action,” Noonan told the Dáil, saying the insurance firm “acted very expeditiously”.

He said that any obligation for further funding will be handled by the company, not the Central Bank and said that as a result of the capital injection its solvency ratio is now 208 per cent, in excess of regulatory requirements.


He said that the RSA has assured the Central Bank that it will provide any further capital required should it be deemed necessary after its internal investigation.

“The Central Bank are happy now that they have a full handle on it,” he said.

Separately, the Minister said that he continues to raise the issue of retroactive recapitalisation of Ireland’s banking sector when appropriate, but said “it’s a long process” which is part of the main process of achieving banking union in the eurozone.

Sinn Féin’s Pearse Doherty said that there had been a “missed opportunity” for the government to get a deal on its banking debt.

But Noonan said that he “always raises the retroactive issue” when it’s on the agenda of meetings with European finance ministers.

“Meetings of the Eurogroup and EcoFin are run in an orderly fashion,” he said, adding “you don’t get up and shout and roar”.

On the mortgage arrears issue, Noonan said that there is a “clear responsibility of financial institutions to do more” and said that letters which threaten homeowners with legal action can “not be a sustainable solution”.

Read: PWC brought in to investigate RSA claims and finance

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.