Dáil Éireann debate -
Wednesday, 20 Jun 1962

Vol. 196 No. 4

Ceisteanna—Questions. Oral Answers. - Industrial and Life Assurance Amalgamation Company Limited.

13.

Mr. Ryan

asked the Minister for Finance if he will state, with reference to the statutory deposits of £20,000 in respect of industrial life assurance and £20,000 in respect of ordinary life assurance made by the Industrial and Life Assurance Amalgamation Company Limited, how they were dealt with on the merger of that company with the Irish Assurance Company Limited; when they were dealt with; and whether steps were taken to obtain the consent of the policyholders of the Industrial and Life Assurance Amalgamation Company to any dealing with such deposits, and, if so, in what manner.

14.

Mr. Ryan

asked the Minister for Finance whether the Industrial and Life Assurance Amalgamation Company Limited published to (a) shareholders, (b) the public or (c) the Minister for Finance in respect of the year 1947 (i) receipts or expenditure in revenue accounts or (ii) trading profit or loss in a profit and loss account; and whether such information was given to him before he sanctioned the transfer by the Industrial and Life Assurance Amalgamation Company Limited of their assets to the Irish Assurance Company, Limited.

Mr. MacEntee (for the Minister for Finance)

I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 13 and 14 together.

The Industrial and Life Assurance Amalgamation Company Limited transferred, with effect from 1st January, 1947, its entire business to the Irish Assurance Company Limited. As part of the assets of the Amalgamation Company, the statutory deposits were transferred to the Irish Assurance Company in accordance with the merger agreement. I understand that the transfer of the deposits took place in 1948 and that the consent of the policy holders of the Amalgamation Company was not obtained as such consent was not necessary.

The annual accounts of the Amalgamation Company, presented to its shareholders in accordance with its Articles of Association, were also made available to the Minister for Finance under these Articles. As, however, the Company did not carry on business in 1947, the accounts for that year were merely the closing accounts of the company and were not available until after the transfer of its business had taken place with the consent of the Minister for Finance given pursuant to paragraph 10 of the Agreement scheduled to the Insurance (Amendment) Act, 1938.

Mr. Ryan

Is it not a fact that when the Industrial and Life Assurance Amalgamation Company Ltd. assigned, or purported to assign, all its assets to the Irish Assurance Company Ltd. there were then 43,866 policy holders who were fully paid up policy holders, and entitled as creditors to claim against the Industrial and Life Assurance Amalgamation Company, and that their interests were ignored by the Minister for Finance who allowed £40,000 that was deposited for their protection to be handed over to the Irish Assurance Company Ltd.?

Mr. MacEntee

I think the Deputy had better put that question in specific terms to the Minister for Finance. In order that the public may be made aware of the true position I want to say that these policy holders were protected by the Minister for Finance, who in the year 1942-43 paid out a sum of over £1,053,000 to meet the deficiency which forced the amalgamation.

Mr. Ryan

Is it not a fact that the 1938 agreement guaranteed to the policy holders in the Industrial and Life Assurance Amalgamated Company, Ltd., that they would have a right to share in the profits of that company, and that an independent actuary has assessed that by reason of the fraudulent action of 1947 those people have been deprived of something like £1½ million? Is not that the situation?

Mr. MacEntee

I must ask the Deputy to put down on the Order Paper in specific terms the questions he is asking as supplementaries. Quite obviously the Deputy is making a number of assertions which, in my opinion, are not true.

Mr. Ryan

Which are embarrassing to the Minister.

Mr. MacEntee

No—which are not true. It was the House that passed the Act, not the Minister.

Mr. Ryan

I have asked for information in my question which the Minister has not given. I have asked him to verify information which has been given to me and the Minister will not say whether or not it is correct.