Written answers

Tuesday, 4 November 2014

Department of Finance

Insurance Compensation Fund Drawdown

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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317. To ask the Minister for Finance the costs incurred to date by the administrators of a company (details supplied) for the rescuing of the company; the likely final cost; when the administration process will be completed; and if he will make a statement on the matter. [41584/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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In 2010 Joint Administrators were appointed by the High Court at the request of the Central Bank of Ireland because of concerns about the solvency position of Quinn Insurance Limited (QIL).  The ICF has been used in accordance with the legislation to allow the QIL Administrators to meet their financial obligations as they arise.  High Court approval is required to be obtained by QIL Administrators each time before any funds can be withdrawn from the ICF. To date, a total of €1,158m 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 losses at the former company and therefore 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 indicates that they are increasingly confident that the total drawdown will be in that lower range.

The Joint Administrators inform me that they continue to target the end of 2016 for the completion of the administration although this relies on the receipt of a satisfactory bid from the current portfolio bid process.

The total fees, inclusive of VAT charged by Grant Thornton to QIL up to the end of June 2014 is €19,319,000.

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