Regulator has fined the Quinn Group €3.2 million and Quinner personally €200,000.
keep up the good work.
I’d say that there is a heap of shite that libel won’t let you publish…
You should pm deepthroat.
Quinn’s competitors have been preparing for the day Quinn collapses for some time now. They knew it was coming. They’ll be looking for his business but they may also have to help pick up the pieces.
Over on AAM they are probably shaking their heads in shocked disbelief, whereas regular readers of the Pin will not be surprised at this (except perhaps at the unusually prompt action by the regulator).
I have an insurance Policy with the Quinn Group. I too am curious to learn if the 288 million have been transferred to the
funds of Quinn Direct.
Was there not a story doing the rounds alleging that Quinn direct had parted company with Moodys. why would an Insurance Company part company with such a company?
If the funds have been returned to Quinn direct was it by way of a loan from one of our banks who are availing of the Deposit guarantee Scheme?
Did Anglo make any large loans to any part of the Quinn Group recently?
I have this awful feeling in the pit of my stomach that Quinn’s action is the beginning of a raid on the bank guarantee scheme and that he will soon be followed by his cohorts.
Moodys used to rate them. The companies being rated pay for the rating. (Lets not even go near that conflict of fucking interest but if you want to check out oversight.house.gov/story.asp?ID=2255). Were going to downgrade so no more ratings.
This would not repair the situation. The asset of the company was put into another company and then a shit investment. We dont know what other assets the company had but if it cant repay the loan, borrowing the cash from a bank doesn’t make the company more solvent.
I think this doesnt really matter. The important thing to remember is that Quinn Insurance has reserves of 400 mil at end 2006 (not sure about 2007 but in 2006 they earned 40 mil so say now 500 mil). The way his assets are invested, he would probably not be able to sell the equities and property to pay the company liabilities. That is why bleeding the cash reserves is so dangerous. And guess what, we would be on the hook for the deficit.
I dont understand this. How so?
Quinn’s competitors have known for years that Quinn were screwed. When Axa or Allianz or whoever charger more than Quinn it’s not because they are trying to rip you off or they are part of the establishment Quinn is trying to shake up, rather it’s because they’ve a track record and a long history of insurance and understand the business. In insurance when you take in premiums you certainly don’t invest them in the volatile asset mix Quinn has. I’m sure results we’re fantastic during the glory years but now reality has come home.
My guess as to what IDBI means is that the chums will borrow from their pet banks at easy terms to shore up their own troubled businesses because the banks don’t care anymore - the taxpayer will bail them out if the loans go bad.
Any loans put in place would precede the guarantee but aside from this, the guarantee would only become payable after the the after has so screwed up that the state has taken it over so what is the incentive for management to provide soft loans. Nowhere does the guarantee consider the state paying the bad debts and leaving the banks afflicted standing.
I hope you are right, but based on experience, I expect that this bailout has been designed to help Quinn and Cohorts. His insurance business is dead in the water, but his personal wealth is probably assured thanks to his friends in government.
Quinn has hit the Irish insurance market with a splash over these past number of years. Yes, Quinn has helped reduce the cost of insurance for the masses but at what cost?
Cheap premiums DOES NOT equal quality insurance cover!
There are more than enough examples of Quinn disputing the payment of claims under policies, and some of these customers were paying serious annual premiums. We have all read these stories in the press. Many have ended up in the courts. Quinn’s defence lawyers even attempted to take on the judiciary!
Quite simply, Quinn is out of step with the global insurance market.
You can’t become a Michael O’Leary of the insurance world, it just does not work and clearly it is not working for Quinn Insurance.
The entire Irish insurance industry can’t be wrong and Quinn be right - surely Joe Public must see through this
(or do they ?)
Sean Quinn’s cavalier attitude towards insurance risk, his customers and his companies responsibility to these customers has cost him and his family. The Quinn brand has been destroyed.
My phone has not stopped ringing all afternoon with fellow insurers, brokers and reinsurers both in Ireland, UK and Germany all expressing opinion in relation to this news. Without exception, insurance and reinsurance providers are thankful that Quinn have been taken to task for their ‘relaxed’ approach to regulations which govern our industry.
Those regulations are there to protect our customers and consumers in general.
However, I do feel very sorry for the employees working at Quinn Insurance. Some were aware of the noise and have taken steps to protect their future. Did the Quinn family and their associate managment team stop and think about their staff? No!
This is not just about Sean Quinn. This is about Sean’s family, the entire management structure at Quinn insurance. The cancer is widespread.
A word beginning with F, ending in D is the only way you can possibly describe this mess.
More to the point, what role did Anglo Irish Bank play and in particular, what role did key Government officials play in ignoring the Quinn growing problem. Quinn represented a buffer zone between organisations members of ISME and SFA when insurance premiums were rising due to very poor claims environment. Politically, Quinn was given the green light to do as he wished to assist the smoothing of these problems
Now, what role did the regulator have from day one? Why is the regulator only acting now when Anglo are on hooks, the Government have launched the bank rescue scheme and so on? Who knew what and when This is the real story.
The entire insurance industry was banging down the IIF and IFRSA doors over the past few years - not complaining about Quinns competitive challenge to the rest of the market but rather, complaining about the manner in which Quinn transact insurance.
Now the problem has come home to roost
Quinn and his management team go global (badly)
As the man himself commented on the fine for the breach of loan regulations…
“I accept complete responsibility for this breach of regulation. While I accept that I made mistakes, I feel that the levels of fines do not reflect the fact that there was no risk to policyholders or the taxpayer, but are a result of the pressures existing in the current environment. However, we will pay the fines and move on.”
I am surprised the great man didn’t avail of the opportunity to comment on the write-offs
imdb.com/media/rm916429056/ch0002057 springs to mind.
Surely this kind of behaviour deserves further sanction than a 200k slap on the wrist?
This is corporate negligence of the highest order.
How does this ‘write-off’ effect the tax-payer?
So instead of 50 Million euro’s of Corporate Tax, now there’s a 425 Million euro loss to write off against future profits?
I’m not surprised Quinn wants to pay the tiny fine and move on.
Sean Quinn provides employment for thousands in this country,unlike most with his wealth,he has remained and pays his (substantial )taxes here.The Quinn group is a privately owned family business,personally I have a large degree of admiration for the man,it is not nice to see any one,regardless of their wealth loose a third of it in one day his back was to the wall,he made a poor call,but until you walk a mile in a mans shoes etc…ok piece said… fire at will!