Insurer wins more time in attempt to hold off the regulator

AN IRISH high court judge yesterday adjourned attempts by the country's financial watchdog to put a beleaguered insurance firm owned by tycoon Sean Quinn into permanent administration.

Lawyers for the Financial Regulator told a Dublin court they had received fresh information from Quinn Insurance in the last hour and asked for a one-week delay.

John Hennessy, senior counsel for the regulator, said officials had received a lengthy affidavit from the company yesterday morning.

"While it does not appear to go in substance into several of the very serious concerns of the regulator in this matter, it nevertheless merits careful consideration by the regulator and a response," the lawyer said.

Quinn, once Ireland's richest man, is fighting to keep control of the lucrative business after the regulator raised concerns over its ability to pay a potential influx of claims. Quinn has admitted the insurance wing needs a cash injection of up to 150 million (132m).

Anglo-Irish Bank, which is owed 2.8 billion by the Quinn family after a complex share deal failed, has tried to step in over the last few days with an offer of refinancing.

The regulator held talks with bank officials at the weekend while contacts between Anglo and Quinn management were also ongoing.

It is understood the potential rescue package tabled involves a 700m investment by the state-owned bank in Quinn.

Two of the insurance giant's flagship divisions, Quinn Healthcare and Quinn Direct, are in provisional administration after the regulator, Matthew Elderfield, raised concerns over solvency levels.

The proposals from nationalised Anglo – which will ultimately be refinanced by the Irish taxpayer to the tune of 22bn – reflect the bank's desire to secure the family debt.

Two other key matters are the regulator's desire to protect the insurer's one million customers and the need to run the business as a going concern.

During the brief high court hearing yesterday, Hennessy suggested a week's adjournment. Lawyer for Quinn, Michael Cush SC, asked that the company be given until Monday to reply in turn to that submission. But Judge Nicholas Kearns, President of the High Court, said the firm must respond by Friday.

The "importance and urgency" of the case meant it should go to a full hearing on Monday, he said.