Quinn, Russia, and the insurance levy

Thursday's hearing before the Employment Appeals Tribunal of Seán Quinn jnr's claim that he was unfairly dismissed from his job at Quinn Insurance, and is entitled to compensation, took an odd turn once he came under questioning from the barrister representing the former insurance firm (it now has three employees).

Quinn told the hearing he was at all times the head of claims with the company, even though he regularly took on other projects and also did work related to the Quinn Group cement, glass and radiator divisions. Once joint administrators were appointed on the application of the Central Bank in March 2010, the amount of insurance work he was doing began to narrow. There was, he said, lots of work to be done but he was being told by administrator, Michael McAteer, not to do it.

Just over a year later the by then nationalised Anglo Irish Bank seized the group from the family. As we already know from other hearings, the family had by this stage initiated a plan to try to prevent the bank from acting on legal charges over an international property portfolio worth almost €500 million.

At Thursday’s hearing, Quinn said he was still on his €75,000 a year salary with Quinn Insurance when he took on senior roles with two Russian companies associated with the property portfolio, for a combined salary of €400,000 per annum.

He also said he didn’t tell McAteer, even though on the same day – June 2nd, 2011 – that he had discussed his role in the insurance company with McAteer, he also took up the role of managing director of Russian company Logistica.

His Russian responsibilities – they centred on the rent roll of some commercial buildings – took him out of the country about 10 per cent of the time over the year or so that they lasted, he said.

Later that June, McAteer told Quinn he was dismissed. At the time, Quinn was out sick, having supplied a doctor’s cert. He said that if he had been given a continuing senior role with Quinn Insurance, he would have had a “decision to make” in terms of his role in the insurance company and regulatory rules.

As of late last year, the State’s Insurance Compensation Fund had paid out €1.158 billion to cover claims made by customers insured by Quinn Insurance.

That in turn has led to the imposition of a 2 per cent levy on all non-life policies issued in the Republic. All in all, it is far from a pretty picture.