DUBLIN, Oct. 6 (Reuters)—Ireland's High Court approved on Thursday the takeover of Quinn Insurance by a joint venture of U.S. insurer Liberty Mutual and state-run Anglo Irish Bank.
Quinn Insurance, which has 275,000 customers, was put into administration last year amid losses linked to Ireland's property collapse.
The High Court's decision means that 738 million euros ($989 million) from the state's Insurance Compensation Fund will be paid to Liberty Mutual. Some 320 million euros will be paid immediately.
Liberty Mutual agreed in April to buy 51 percent of a new joint venture, Liberty Mutual Direct Insurance Company, which will own Quinn Insurance. It also agreed to take full operating control of the Irish insurer.
Two groups representing Quinn policyholders had expressed concerns about the proposed deal saying it involved an unfair distribution of public resources and they did not have enough information on the deal.
The lawyer for the administrators said the takeover would ultimately save taxpayers' money.
“You will have a business being saved, policy holders protected, they will not be adversely affected, the employees' position will be secured and they will remain in employment,” Denis McDonald, a lawyer for the administrators, told the High Court.
“The business itself will be secured into the future.”
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
