Sir, – In the Irish Times Business Weekend section ("Setanta liquidator critical of MIBI decision", March 12th) I was surprised by the estimate from the liquidator of Setanta Insurance that the total claims for Setanta could amount to €90 million, with the number of claimants at 1,750.
The figures would mean that the average claim is coming in at €51,428.
While it is accepted that there are both valuable cars and valued citizens, it is some challenge to conceive how we could arrive at this average claim figure.
There may have been a decimal point error, but it might help if the liquidator was asked to clarify the figures.
The Setanta liquidation follows on from the collapse of the Insurance Corporation of Ireland, PMPA and, more recently, Quinn Insurance.
The taxpayer and, in particular, Irish motorists continue to pay dearly. The Setanta case is unique, however. Setanta only carried on business in Ireland, yet was incorporated in Malta and so was subject to financial regulation by the Maltese authorities.
Was this structure not a red flag at the outset and should it not have put our regulatory authorities on immediate alert?
After all the model adopted by Setanta meant all profits/gains would go to Malta while all risk was inevitably going to lie in Ireland?
And as we now know the total bill comes to €90 million.
– Yours, etc,
PADDY GOGARTY
Portmarnock,
Co Dublin.