Quinn Formally 'In Administration'

Despite resistance from the company's owner and a weekend of lengthy talks, the Financial Regulator has placed Quinn Insurance into full administration.

The company has maintained throughout the past week that it has been in a profitable position and had sufficient cash resources.

Hundreds of jobs in the business are now at risk, on both sides of the border after the Financial Regulator continued to apply pressure to the UK and Ireland insurance provide.

With a deal between Anglo Irish Bank and other lenders failing to come through the company has therefore been moved into administration.

A spokesman for the regulator today said: "The Financial Regulator continues to prepare for a full High Court hearing."

The regulator moved against the company after it emerged the Quinn Group was in breach of "Solvency Rules" under which insurers must hold a cash substantial cash reserve. It is believed that despite the owner Sean Quinn insisting the company was holding hundreds of millions in cash, the regulator had their books were €100 million short of its obligated level of holdings.

After being put into 'provisional administration' on Friday, ahead of the crucial weekend talks, a spokesman for the group said: "In order to restore the solvency position to the FR’s 150% requirement the Group estimates that a cash injection of between €100m and €150m is required.

"Whilst this is fresh capital it will improve the [Quinn Insurance] net asset position and is not required to pay claims, or fill any other holes as the company has been a profitable business."

However, this morning the chief of the Financial Regulator Matthew Elderfield said he wanted to proceed with the court case and that chief concern is protecting the 1m Quinn Insurance policy holders.

Finance Minister Brian Lenihan is being kept informed of developments as the High Court in Dublin decide today (Monday) whether provisional administrators appointed to Quinn Insurance will be made permanent.

(DW/GK)