Quinn Insurance in Administration

[boojangles]

When is the Regulator going to go after VHI ??

Seems to me like someone in government saw a one million a day cash cow as a solution to a raft of problems and  managed to encourage a member of the opposition to go get it for them. Neat.

This man speaks sense.

[muppet]

[give her dixie]

Its on the cards.......................

http://www.rte.ie/business/2010/0408/quinn.html

State-owned Anglo Irish Bank has proposed injecting €700m into Quinn Group as part of a financial restructuring package, RTÉ News has learned. The plan, if agreed, would see €150m injected into Quinn Insurance and €550m would be used to pay off bondholders.

Anglo's proposal would see money injected into Quinn Insurance to address its solvency shortfall. Other banks owed €1.2 billion would be paid off with Irish Government bonds.

Anglo would take a majority stake in Quinn Group, which has interests including wind energy and manufacturing. This deal, in effect, would mean the State helping the insurance business out of its current difficulties.

But any such plan faces significant hurdles. The Financial Regulator has concerns, and a deal would also have to be approved by the European Commission.

Last week, provisional administrators were appointed by the High Court to Quinn Insurance. The Financial Regulator said it took the court action when it became aware that certain subsidiaries of Quinn Insurance had given guarantees which have the effect of reducing the insurer's assets by around €448m. The company and regulator are due to argue their cases in court on Monday.

Insurance brokers reassured on Quinn Insurance

Earlier, the joint provisional administrators appointed to Quinn Insurance wrote to Irish insurance brokers to reassure them that the company is continuing to trade and all of its liabilities are being met.

The administrators said the letter was a response to comments and information issued by the Irish Brokers Association (IBA).

The administrators, Paul McCann and Michael McAteer, referred to reports in the media yesterday where the IBA speculated that in certain scenarios, such as liquidation, Quinn Insurance's commercial customers would have limited access to the Insurance Compensation Fund.

Today's letter told brokers that during an administration procedure, by law, the company cannot be placed into liquidation.

'In the history of the administration process since it was introduced in 1983, no company which has gone into administration has gone into liquidation. We therefore write to reassure you that the legal position set out by the Insurance Brokers Association is not relevant as QIL is in administration,' the letter says.

'We may apply to the High Court to have access to the Insurance Compensation Fund for any sums which we and the court consider are required to enable us to carry on the business of QIL and to perform our other functions under the relevant legislation,' the provisional administrators said.

[Bogball XV]

When is the Regulator going to go after VHI ??

Seems to me like someone in government saw a one million a day cash cow as a solution to a raft of problems and  managed to encourage a member of the opposition to go get it for them. Neat.

This man speaks sense.

Great quote on the narcissist there, seanie doesn't seem to understand that the house of cards was not built on solid foundations, as seafoid points out, maybe the loan book had some impact too!

Why do you want the regulator to go after VHI?  VHI is semi-state, it's effectively the states alternative to funding a reasonable health service, imo VHI should work to different rules and the other guys should be subsidising it, unless of course we'd prefer the US system.

[orangeman]

Where does this Anglo deal leave Sean Quinn himself ?

[no mo do yakamo]

When is the Regulator going to go after VHI ??

Seems to me like someone in government saw a one million a day cash cow as a solution to a raft of problems and  managed to encourage a member of the opposition to go get it for them. Neat.

This man speaks sense.

Great quote on the narcissist there, seanie doesn't seem to understand that the house of cards was not built on solid foundations, as seafoid points out, maybe the loan book had some impact too!

Why do you want the regulator to go after VHI?  VHI is semi-state, it's effectively the states alternative to funding a reasonable health service, imo VHI should work to different rules and the other guys should be subsidising it, unless of course we'd prefer the US system.

Sure arent all us taxpayers subsidising vhi any way. and all us non vhi health insurance subscribers are subsidising it on the double. What have they got in assets , equity or liquidity? Good job the regulator has his hands full now . better to be chasing the non subsidised Quinn , cos  god forbid that  you look at the state of the quinn subsidied vhi. Work to different rules??   Yeah . wanna play me at soccer? you can play by the normal rules and im allowed to handle the ball. Oh, and im picking the ref.

[Declan]

Unreal stuff now - Is this officially a Quanglo then??

[A Quinn Martin Production]

I see on Primtetime last night at last somebody in the media (bar John McManus) has the balls to place the blame for this situation exactly where it belongs...at SQ's door.  I hope people in Fermanagh were watching.

[Bogball XV]

When is the Regulator going to go after VHI ??

Seems to me like someone in government saw a one million a day cash cow as a solution to a raft of problems and  managed to encourage a member of the opposition to go get it for them. Neat.

This man speaks sense.

Great quote on the narcissist there, seanie doesn't seem to understand that the house of cards was not built on solid foundations, as seafoid points out, maybe the loan book had some impact too!

Why do you want the regulator to go after VHI?  VHI is semi-state, it's effectively the states alternative to funding a reasonable health service, imo VHI should work to different rules and the other guys should be subsidising it, unless of course we'd prefer the US system.

Sure arent all us taxpayers subsidising vhi any way. and all us non vhi health insurance subscribers are subsidising it on the double. What have they got in assets , equity or liquidity? Good job the regulator has his hands full now . better to be chasing the non subsidised Quinn , cos  god forbid that  you look at the state of the quinn subsidied vhi. Work to different rules??   Yeah . wanna play me at soccer? you can play by the normal rules and im allowed to handle the ball. Oh, and im picking the ref.

well if you get to pick your team from vhi subscribers and I get to pick from the other health insurer subscribers, it'll hardly matter that you can handle the ball, my team will win anyway

[Bogball XV]

Last week in his rte appeal to the masses SQ told us that it was simply a matter of getting the bondholders to release their guarantees, that these bondholders had been approached and were willing to play ball, this week we hear that anglo are trying to buy said bonds from the bondholders at a discount, thereby inferring that the bonds aren't worth their face value and that it would be a damned stupid bondholder who would release the guarantee from the performing company.
Last week in his rte appeal to the masses SQ told us that the regulator had performed one of the biggest mistakes in the history of the state, this week we hear that he was technically correct.

Starting to remind me of Bertie, the only difference is that Bertie was a successful gambler

[A Quinn Martin Production]

Last week in his rte appeal to the masses SQ told us that it was simply a matter of getting the bondholders to release their guarantees, that these bondholders had been approached and were willing to play ball, this week we hear that anglo are trying to buy said bonds from the bondholders at a discount, thereby inferring that the bonds aren't worth their face value and that it would be a damned stupid bondholder who would release the guarantee from the performing company.
Last week in his rte appeal to the masses SQ told us that the regulator had performed one of the biggest mistakes in the history of the state, this week we hear that he was technically correct.

Starting to remind me of Bertie, the only difference is that Bertie was a successful gambler

Looks like the porkies have been flowing.  Question:  does the proposed €700mill injection mooted by RTE cover the €484mill of guarantees?  In other words is it covering the guarantees plus another €216mill or is it €700mill "cash" to make QI solvent??

[Bensars]

Is the announcement expected today that QI will be put into permanent( if thats the trerm) administration ?

If so, what will be the implications ?

[boojangles]

We are told that all insurance companies in the state have to have a 150% solvency level. Quinn needs around 100million to reach this level.Not 400million and definitely not 700million.

Does VHI (which is an Insurance provider) have a 150% solvency level?? What does it matter if it is semi-state or state run?

[supersarsfields]

Quinn does only need £100M for to solve the solvency ratios which as I said yesterday were below the 150 required for Ireland. They were at approx 120%. Which is not unsafe by any measure considering in other economies the ratio needed is only 100%
The other 600m is to cover his bonds in America which he is claiming he does not want or need as he is fit to cover these bonds and has never defaulted payment on these.

But things look very bleak at the minute.

[A Quinn Martin Production]

Is the announcement expected today that QI will be put into permanent( if thats the trerm) administration ?

If so, what will be the implications ?

The administrators confirmed yesterday that according to Southern law a company in administration cannot be liquidated...but I suppose it can be sold??