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Dublin: 11 °C Thursday 20 June, 2013

Quinn Insurance administration may cost €1.6bn

The new figure is hundreds of millions of euro more than the original estimate given last year.

Image: Julien Behal/PA Archive/Press Association Images

THE ADMINISTRATION OF Quinn Insurance Ltd may cost as much as €1.6 billion – hundreds of millions of euro more than the original estimate - according to evidence given to the High Court today.

This could lead to the 2 per cent levy currently imposed on insurance policies being extended for a considerable number of years, Justice Nicholas Kearns was told.

Last year, Kearns approved a potential payout of €738 million from the Insurance Compensation Fund to deal with the administration procedure. RTÉ News reports that he was shocked to hear that joint administrators now believe the cost cost be as high as €1.6 billion.

However, it was stressed that the higher figure was a worst-case scenario, with administrators saying the final payout is likely to be between €1.1 billion and 1.3 billion.

A 2 per cent insurance levy covering home, motor and commercial policies came into effect at the beginning of this year, and was expected to last for 12 years.

Read: Court told Quinn Insurance will need €738m from State fund>

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Comments (62 Comments)

  • Reg 31/07/12 #

    Cheers Sean, another bill you’ve landed us with.

    Reply
  • Should be another march in support for the boys in Cavan so…….

    Reply
  • Quinn wants the taxpayer to pick up the bill. Quite a lot of people turned up in Cavan to support him. Perhaps that’s the answer? Let his supporters come up with the money to bail him out.

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    • Quinn never wanted the taxpayers to be out one cent and if you go into the quinn/anglo blog or concerned irish citizens facebook page you might have a better understanding of how he made a firm commitment to repay all monies but that offer was thrown in his face . FACT

      Reply
    • Want some facts? Here’s one:

      Quinn improperly used funds from the insurance company in other parts of his business directly leading to his removal from the board.

      Here’s more:
      http://www.bbc.co.uk/news/uk-northern-ireland-19063419

      It’s the beeb so don’t go blaming the Dublin meedja

      Reply
    • SMcB 31/07/12 #

      A firm commitment to repay all monies… SQ has questioned the legicimacy of same debt. Why would anyone repay debt when the ‘legitimacy’ of the debt was under question???

      Any anyhow, the 7 yr plan has been proved to be hogwash.

      Reply
    • he had his chance, when he put his money out of reach, that was the last straw for me. let him rot in jail. heard he was on 2k a week from social welfare! his only time outside should be picking up litter with a high vis on displaying “community service”. so much for Enda dealing with white collar crime!

      Reply
    • censored 01/08/12 #

      Look that word “FACT” does not actually mean “LIES”.

      You are confusing rhetoric with behavior. Which of Quinn’s “promises” have been kept?

      I will repeat, let Quinn’s deluded supporters bail him out if they’re so keen on it. Keep your hands out of my pocket.

      Reply
  • Absolute f**king disgrace that we’re being told to pick up the bill for ths gouger who gambled and lost…why should we be asked to bail this guy out? We’ve already had to bail out the banks and now the insurance crowd? Are we that incipid that we can’t or won’t stand against this utter theft?

    Reply
  • Quinn Supporters Club gone to ground none could be contacted today perhaps hiding in same place as that other court fugitive .

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  • Maybe the Quinn Supporters Club would like to pick up the tab on this one? What with their being against injustice and all that…

    Reply
    • Why? Because the administrators have come in and said the business was profitable, then saying they needed 700 million and now 1.6billion. How can the figures change to such as extent. The average claim cost does not fluctuate by that large of an extent. Unless for some reason the laws of probability have stopped working.

      Reply
  • Hopefully this will open the eyes of his dupped supporters. It is ok to admit you tought you were defending the wronged person but surley this has to convince you that the Irish people are the wronged ones & the Quinn’s do not deserve your support.

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    • Actually no John. This is exactly what Quinn supporters predicted. There was never a need to put QDI into administration. It’s well known that the administrators were charging €450 per hour (yes per hour!!) 18 months ago. Now if you or anyone else on this blog can tell me of anyone in the financial world who is worth that rate please tell us. Yes the taxpayers and insurance customers of this country are being ripped off on the double. Firstly because there is no longer an insurance company which provides decent competition to the establishment insurance companies since QDI was conveniently removed from the scene and secondly the taxpayers are now going to have to pay for the privilege of having this insurance company removed. Just take off the blinkers for once- maybe a few of the intelligent among you may realise who is really conning you!

      Reply
    • SMcB 31/07/12 #

      QIL was insolvent. The 7 yr plan admits this. As well as that the profits over the 7 yr period would not have even covered the investment needed – 600mil profit vs a capital injection of 650mil.

      Reply
  • Quinn and his ilk are just more parasites that the people of this country have to bleed for.

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  • Hard to know wether to laugh or cry at this stage, lets take a step back, those loyal supporters of messer Quinn continously tell us he offered to pay his debts, I recall how he told us how profitable Quinn insurance was and it would be one outlet to pay off his debts. MOG, can we just imagine the greater mess had the administrators not been called in. I suspect that regardless of his Anglo woes, the Quinn group was heading for disaster anyway. Most of its core businesses supplied or were inter twined with sectors now in the toilet, namely construction and hospitality, quinn insurance then entered the disasterious UK market, i begining to wonder was he such the bright spark his Cavan fan base think he was.

    Nice of the High court to permit 30k expenses for 8 family members earlier today but I wondered where is this money coming from, after all Quinn is now Bankcrupt and the rest have had their assets frozen, although of course god bless them they are quick to tell us how hard up they are. All this said, interesting to note the focus has now changed to Sean Juinors wife and movement of assets, heavens above, my heart bleeds but she has the comfort of that nice little earner from the Ukraine.

    Vomit inducing saga and suddenly all those high profile supporters at the recent rally have ducked for cover?

    Reply
    • rusty9 01/08/12 #

      jI dont think that just because they may not have returned emai or contact from journalist, that they hadve ducked for cover. They stated their opinions very clearly on Sunday at the rally. Seems to be worrying the Government.

      Reply
    • rusty9 Have just read Facebook page of your Concerned Irish Citizens THE FACTS can only ask what planet do you people live on but it served some purpose lots of photos of Quinn supporters to whom I hope we can send the 1.6 billion bill to if they all shell out half a milion could go a long way.

      Reply
  • Didn’t Liberty Insurance buy Quinn Insurance? Enough is enough cut off that deadweight before it drags us all down.

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  • Well he can swing if he thinks im gonna pick up the bill on this one. Where’s our cavan supporters group now? If that shower of sheep still have sympathy for him, well they are dumber than i first thought.

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  • I am going to have to crash my car to get this money back

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  • This is from the Irish Examiner 5th of May 2012 by Michael Clifford

    Mr Deegan is 48 years old, endures constant physical pain, and is confined to a wheelchair as a result of a car accident in 2001. He was a passenger in a vehicle which went out of control and ended up overturned in a field in Ballymun, north Dublin.

    In the normal manner of these things, he sued the driver, who was insured by Quinn Direct. The insurance company refused to pay out on the claim. Instead, Quinn Direct made a case that Mr Deegan was involved in fraud, that he hadn’t been in a car accident but had sustained his injuries in a fall from a high-rise flat in Ballymun.

    This went on for seven years, during which time the paralysed Mr Deegan had to not only readjust to a shattered quality of life but also had to labour under the suspicion of behaving like a criminal and worry whether he was going to be reduced to penury by a long, drawn-out court action.

    When the case finally got to court, the judge expressed an opinion that there appeared to be absolutely no evidence that Mr Deegan had engaged in fraud. Thereafter, Quinn Direct moved quickly to settle the case. A figure of €1.75m was agreed upon to cater for the 24-hour medical care Mr Deegan will require for the rest of his life.

    The trajectory of the case was not unusual for Quinn Direct. In a whole raft of cases, the company dragged claimants all the way to a court appearance until finally conceding that it didn’t have a case. More often than not, these cases came to an end after presiding judges made disparaging or accusatory comments about the company.

    In 2008, when Quinn refused to pay out to a Galway-based company, Murray Timbers, Judge Peter Kelly said he found the behaviour of the insurer “disturbing”. At one stage, he threatened to send papers on the case to the DPP.

    A few years earlier, dealing with another arm of the Quinn empire, an English High Court judge said he found that the company acted in a “cynical, calculated, and unscrupulous” manner in a dispute.

    Last week, in a case in which Sean Quinn is being investigated for contempt of court, he told the High Court that he had built up his empire in an honest fashion, and his creditor, the bank formerly known as Anglo Irish, took away his empire in an “underhand” manner.

    Reply
    • Ray,

      That copy and paste function is magic isn’t it. I kept on copying and pasting useless information when I first found it as well. That was a famous case and from working in Quinn Direct I know there were facts about that the actual 999 call that did not come to light.

      Reply
  • Don’t see many leaving comments in here to night , were are the all the ppl sticking up for them the last few weeks ,, come on ,,, were are you

    Reply
  • People forget that QI was shut down by the regulator in the Uk because they way undercharged to cover risks. Here they were fined by the regulator for the misuse of customers money. They spent years conning people out of valid claims . Murray timber products was one where they tried to swindle a client for about 25m euro and at that time they were nearly sent to prison for contempt. The Pod Night Club suffered a similar fate. These got very little press at the time.. Why.. Because Quinn had control over the media.. Print anything negative and the advertising was pulled. People could rarely afford or even have the heart to take them on . They had a department set up with a pure goal to find any way of getting out of paying claims. In all fairness to Liberty they took them over but judging by their initial advertising I think they were a little surprised at their practices when they moved in. They now want to distance themselves from the old Quinn Insurance as far as they possibly can.

    Reply
    • SMcB 01/08/12 #

      I’d be interested in seeing the press coverage surrounding both cases. I don’t doubt that the allocations are false BTW.

      Reply
    • SMcB 01/08/12 #

      *allegations

      Reply
    • Ray,

      You are obviously talking complete nonsense. And what you are saying shows your lack of knowledge. A financial institution is regulated by the regulator in which it is based. So even though Quinn Direct operated in the UK market, it was regulated by the Irish financial regulator. The UK regulator had no power over Quinn Direct. Also I don’t know anything about these cases but I severely doubt it. As for being sent to prison for contempt, who? It was a limited company so were all the directors to be sent to prison? Nonsense. As for having a control of the press I think we can all agree that is not the case!

      Reply
  • Disgraceful. Lining their own pockets. The levy on my insurance to pay for greed makes me sick. Greed greed greed pure and simple.

    Reply
  • God I was getting sick of them talking crap ,,, every one out to get poor old sean ,,,, well he fooled a lot of ppl ,,,, I hope the courts lock the hole lot up mother ,,, sisters,,,,, any one of them that’s signed any paper work

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  • Where’s Eilish? Very quiet now,ha?

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  • I’ll do it for €10 million…..

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  • How ,,,,, explain please

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  • sam 01/08/12 #

    The administrators initially said there would be no claim on the compensation fund as the short fall in the insurance company was only around 160 million, however if the cross guarantees were taken into account may be max 500 million.
    Great publicity was made of the fact that Quinn had no actuarials, The administrators employed three different companies of actuarials, they then came up with a figure of 200 million claim on the compensation fund now the figure is going to be 1,300 million.

    We are been taken for total fools by the administrators, consultants and civil Service

    Reply
  • Lliberty Insurance were gifted Quinn Insurance by who?????

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    • Gifted By the present FG/Lab government. Also can anyone explain why if Liberty now own QDI why are the administrators still being paid these ridiculous sums to run the company. Has Liberty not got the ability to run it themselves?

      Reply
  • sam 02/08/12 #

    Justice Nicholas Kearns may be surprised, the media may be surprised even Michael Noonan may be surprised. Why because the standard of media reporting in this country is pathetic the reality of what is going on has never been reported. A press release by Anglo is compacted into a few lines, the writer gets paid, papers get sold everyone’s happy .
    The government / Civil servants put people in to run an insurance business, a business which they admit they knew nothing about and have now cost the policy holder 1.6 billion through the insurance fund and 2.8 billion to the tax payer which the company was capable of repaying over 7 years.

    Reply
  • The ordinary people and our ordinary societies, have been financially attacked, and severely wounded, by what would appear to some type of super predators. Even now, as we attempt to lick our wounds and mourn our dead, we come under yet another vicious attack. As the initial predators, engorged with the results of others labor, secrete themselves away from public gaze, the lesser predators begin their descent, to pick over the few tasty morsels that remain within the carcass. I don’t for one minute believe this statement from the administrators. To me, it smacks more of the sound of the drone of vultures, descending upon the near dead, too weak to offer any defence. Phuckers, every last one of them.

    Reply
  • Sean Quinn offered to pay himself and he had the means to do so given the chance. Do we have proof we need to pay extra levy on our insurance of do we take the word of our trustworthy masters of spin government.. This is just another stealth tax people.. Wake up and smell the sh…t we are been fed

    Reply
    • SMcB 01/08/12 #

      What means? Can you provide and evidence of this? This ‘evidence’ should not mention any reference to the 7 yr plan as it has been proven to be hogwash (if you don’t believe me the link is further up). Please feel free to comment on the plan if you wish.

      Reply
  • rusty9 31/07/12 #

    Many of the posts here are amazing and confirm the ignorance and lack of proper research on this story. People, you are being played for fools-waken up.

    Reply

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