BUSINESSMAN SEÁN Quinn conceded defeat in his battle to stop the Financial Regulator putting Quinn Insurance into administration and effectively relinquished control of the State’s second largest insurance company.
In a dramatic reversal of its position, the Quinn Group withdrew its opposition, leading the High Court to appoint permanent administrators to the insurer. The regulator and the insurer said the move was in the best interests of 1.3 million policyholders.
“A sense of realism dawned on people,” said a director of the Quinn Group, who asked not to be named. “The regulator held all the cards . . . pennies dropped across the whole system.”
When contacted by The Irish Times yesterday, Michael McAteer, joint administrator of Quinn Insurance Ltd, said: “We are dealing with the day-to-day issues to ensure the business stays open.”
The appointment of administrators, Mr McAteer and Paul McCann of Grant Thornton, allows them to commence talks with potential buyers as they attempt to put the firm on a sound commercial and financial footing.
It is understood that up to 30 expressions of interest have been received from potential suitors although the administrators stressed yesterday that no consideration has been given to a sale at this point.
However, any attempts to wrestle ownership of the insurer – the most profitable part of the Quinn empire – away from the group will be resisted.
Liam McCaffrey, the group’s chief executive, said the best outcome was retaining the insurer within the group and bringing the firm out of administration “at the earliest opportunity”.
“The current environment is not conducive to a firesale,” he said, adding that selling the insurer to a multinational would see the firm taken out of Cavan with the inevitable loss of jobs.
The group was examining several options, he said, including a rescue plan by State-owned Anglo Irish Bank, which is owed €2.8 billion by the Quinn family.
Retaining ownership of an independent Quinn Insurance within the group would “clearly be to the benefit of Anglo” in its attempts to recover the loans, he added.