Financial Services Regulation

Dáil Éireann Debate, Tuesday - 1 May 2018

Tuesday, 1 May 2018

Questions (94)

Michael McGrath

Question:

94. Deputy Michael McGrath asked the Minister for Finance the amount transferred to parent companies outside Ireland that is classified within management expenses by participants in the insurance market here, specifically non-life insurance in each of the years 2013 to 2017, in tabular form, based on the data gathered by the Central Bank; the percentage of the entire amount of management fees in the non-life insurance market that is transferred to parent companies outside Ireland; his views on whether the companies are shifting profits outside of Ireland by using the management expenses classification; and if he will make a statement on the matter. [18968/18]

Written answers

Minister for Finance

In my role as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Consequently my Department has no role in collecting the information being sought by the Deputy.

In order to address the questions posed, my officials contacted the Central Bank of Ireland on this matter. The Central Bank advised that the information collected from companies does not identify separately payments made to or received from other group companies. Therefore the breakdown being sought by the Deputy is not available.

With regard to views on whether insurers are shifting profits outside of Ireland by using the management expenses classification, the Central Bank has informed me that it is not evident that there is any material transfer of profits via management expenses to parent companies. It does acknowledge however that in some instances, an Irish insurer may receive services from its group, which it pays for.