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Quinn insurance lost €706 million in 2009

The news of the figures come as the company is expected to be sold off to an American insurance giant and Anglo Irish Bank. The losses will also mean it will need help from the Insurance Compensation Fund.

THE INSURANCE ARM of Quinn lost €706 million in 2009, the year before administrators were appointed to the company it was reported today.

The announcement came on the day it was also confirmed that the administrators had signed a deal to sell the company to US insurance giant Liberty Mutual and Anglo Irish Bank as had been reported last month.

All 1,570 staff members in the Republic and Northern Ireland will be retained under the sale, PA reports.

Liberty will inject €102 million and Anglo will put in €98 million to recapitalise the new company which will now be known as Liberty Mutual Direct insurance.

The administrators of the leading insurance firm, set up by the now heavily indebted Séan Quinn, said that of today’s announced losses €559m of this was operating losses, and €147m was due to write-downs of assets.

A further €160 million was lost in 2010.

The administrators said €333 million was lost in the UK insurance business, the bulk of that relating to the non-motor insurance industry, RTÉ reports.

The administrators said that the company’s poor performance in 2009 and 2010 would mean they would have to seek help from the Insurance Compensation Fund to the tune of €600 million.

Approximately €180 million of this is expected to be drawn down later this year and will likely mean an industry wide levy being applied to non-life insurance customers, reports the Irish Times.

About the author:

Hugh O'Connell

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