Quinn Insurance was ‘precarious’ before 2010, ex-chairman says
Jim Quigley shocked to learn in March 2010 that some Quinn subsidiaries had entered agreements that ‘eliminated the value’ of much of its reserves
QIL was placed into administration at the end of March 2010 on foot of the Central Bank securing a High Court order. The business was subsequently taken over a year later by Boston-based insurer Liberty Mutual Group
Quinn Insurance Limited’s (QIL) financial standing was “precarious” even before its board was shocked to learn in March 2010 that some of its subsidiaries had entered agreements that “eliminated the value” of much of its reserves, a former chairman of the insurer told an inquiry on Thursday.
Insurers are required to hold a reserve of assets by law to make sure that policyholders’ claims are met in the event that a company suffers an unexpected loss.