Dáil Éireann Debate, Tuesday - 3 May 2011
56 Deputy Sandra McLellan asked the Minister for Finance the full extent of the State commitment to the Anglo Irish Bank-Liberty Mutual preferred bid for Quinn Insurance Limited in either direct cash terms, guarantees or underwriting; and if he will make a statement on the matter. [9659/11]
View answerThe Joint Administrators announced last week the acquisition by Liberty Mutual Direct Insurance Company Ltd (LMDI), a joint venture between Liberty Mutual (LM) and Anglo Irish Bank, of certain assets and liabilities of QIL. A 12-14 week transition process will commence immediately during which time LMDI will obtain all the necessary regulatory consents from parties including the Central Bank of Ireland. It should be noted that there is no State commitment which is specific to the Liberty Mutual Direct Insurance Company Ltd (LMDI) preferred bid for the business of Quinn Insurance Ltd in direct cash terms, guarantees or underwriting.
The Insurance Compensation Fund (ICF) is however available to cover the deficit which is expected to arise in the run-off of the remaining parts of QIL not purchased by LMDI.
In this regard, I in my role as Minister for Finance may on the recommendation of the Central Bank advance to the ICF under Section 5 of the 1964 Insurance Act such sums as I think appropriate to enable payments out of the fund to be made expeditiously. Any sums of this nature are recoupable over time through the placement by the Central Bank of a levy on the insurance industry.
I will consider such a request if it should arise in the same way that I would consider any request of this type no matter who the preferred bidder was.
