The Irish Financial Regulator defended his action against the Insurance arm of the Quinn Group before the Oireachtas Joint Committee on Economic Regulatory Affairs yesterday, as an Irish Times report notes
Mr Elderfield said he remained “open to dialogue” to address the solvency deficit at Quinn Insurance. Two other insurers had recently breached the 150 per cent solvency rule on how much firms must hold in reserve to protect policyholders, he said, and they increased reserves “within days”. Another two insurers breached solvency rules by a greater amount and were placed in administration. Mr Elderfield said this showed the regulators approach at Quinn was “completely consistent”. Senator Diarmuid Wilson, for Cavan-Monaghan, criticised Mr Elderfields actions, saying he had been “heavy-handed” and “acted with haste” against Quinn. Mr Elderfield rejected this, saying Quinn had persistently broken “long-standing” solvency rules.
Today, RTÉ reports that the Quinn Group are to withdraw their objection to the permanent appointment of administrators to Quinn Insurance. See also BBC report. Update The High Court has appointed permanent administrators to Quinn Insurance. From the updated RTÉ report
In a statement, Jim Quigley, Chairman of Quinn Insurace Ltd, said:’This decision has been taken after very careful consideration. ‘We have concluded that, given what has happened, it is in the best interests of the Company, our employees and policyholders that, as a matter of urgency, we work closely with the Administrators and the Financial Regulator to get the situation resolved as quickly as possible.’