Written answers

Thursday, 21 July 2016

Department of Finance

Company Liquidations

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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103. To ask the Minister for Finance the progress that has been made in respect of the liquidation of a company (details supplied); if those caught up in outstanding claims are facing any losses; the role of the Insurance Compensation Fund; the role of the Motor Insurance Bureau of Ireland; the estimated number and value of outstanding claims and shortfall; and if he will make a statement on the matter. [23854/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The liquidation of an insurance company is a legally complex process.  Setanta is a Maltese incorporated company and, therefore, the Setanta liquidation is being carried out under Maltese law. 

Progress in the liquidation of Setanta Insurance has been awaiting the outcome of legal proceedings in the case of the Law Society of Ireland versus the Motor Insurers' Bureau of Ireland (MIBI).  On 4thSeptember 2015, the High Court held that the MIBI is liable in respect of claims against the policy holders of Setanta. This decision was appealed by the MIBI and the Court of Appeal upheld the High Court Decision. The MIBI has been granted leave to appeal the decision to the Supreme Court.  As this case is sub-judice, there are certain matters which I am not in a position to comment on at this time.  

However, the Liquidator for Setanta has informed me that:

- The number of open claims was 1,678 as at 31st May 2016.

- The claims reserves position stands at between €87.7 million and €95.2 million.

- The Liquidator reports that it is proving difficult to settle claims in advance of the outcome of the MIBI appeal.

- Final settlements can only be paid out after all of the company's liabilities are quantified, including claims.

- The Liquidator continues to be of the view that he will not be in a position to meet more than 30% of claims. 

I expect to be able to provide a more accurate update after the legal proceedings are concluded.

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