Tuesday, 10 June 2014

Questions (173)

Stephen Donnelly

Question:

173. Deputy Stephen S. Donnelly asked the Minister for Finance the total amount of funding provided by the insurance compensation fund to Quinn Insurance to date; and the current estimate of the overall amount of funding to be provided, including that forecast to be provided in future. [24431/14]

View answer

Written answers (Question to Finance)

In 2010,  at the request of the Central Bank of Ireland, Joint Administrators were appointed by the High Court under the Insurance No. 2 Act 1983 to Quinn Insurance Limited (QIL) because of concerns about the solvency position of that firm.   To date, a total of €1,118m has been drawn down from the Insurance Compensation Fund by the Joint Administrators.

The Joint Administrators, when presenting their 10th report to the High Court in July 2012, indicated that the potential call on the ICF could be up to €1.65bn. The Joint Administrators pointed out in their report that if they were to remove most of the accounting adjustments and use a "best estimate" calculation, then the call on the fund is likely to be in the range of €1.1bn to €1.3bn rather than the €1.65bn for which they have provided.

The latest update from the Joint administrators to officials from my Department indicate that they are increasingly confident that the total drawdown will be in that lower range.