asked the Minister for Industry and Commerce if he is satisfied that the proposal of the PMPA Insurance Company to take over the New Ireland Assurance Company is in the national interest; and, if not, if he will take steps to prevent the proposed takeover.
Ceisteanna—Questions. Oral Answers. - Insurance Companies Operations.
8.
The legal powers to supervise the operations of insurance companies are vested in me by the Insurance Acts, 1909 to 1964, and are concerned with the protection of policyholders by ensuring the maintenance of a position of solvency by each licensed insurance company. In the case of the proposal of the PMPA Insurance Company to bid for the shares of the New Ireland Assurance Company, I am keeping in close touch with the situation but at this stage I do not think it would be advisable to make any statement in the matter.
May I put it to the Parliamentary Secretary that he has not answered the question he was asked as to whether or not the Minister considers this proposal is in the national interest?
I said in my reply that I did not think it would be advisable to make any statement in the matter. That was an answer.
It is a stock answer. May I ask the Parliamentary Secretary if this takeover is to take place can he ensure that the interests of policyholders of the New Ireland will be protected?
In the normal way when one company makes a bid to gain control of another that is not a matter in which the Minister for Industry and Commerce has a function. However, in the case of insurance companies the Minister has a special responsibility as a supervisory authority under the Insurance Acts to ensure the solvency of the companies and the Minister will obviously be concerned to ensure in the negotiations here that the solvency of both companies is preserved.