Statements from regulator and Seán Quinn
SETTLEMENT AGREEMENT between the Financial Regulator and Quinn Insurance Ltd (QIL) and Seán Quinn:
The Financial Regulator has entered into a settlement agreement with QIL and Seán Quinn snr, chairman.
The regulator has reasonable cause to suspect that breaches of regulatory requirements occurred in relation to QIL.
These breaches related to contraventions by QIL of obligations under the insurance acts and regulations, including failure to notify the Financial Regulator prior to providing loans to related companies.
The regulator required QIL to pay a monetary penalty of €3,250,000.
The Financial Regulator also required Mr Quinn to pay a monetary penalty of €200,000.
Mr Quinn snr, chairman, is stepping down as chairman and as a director.
James Quigley has been appointed as chairman.
QIL confirms that no consequences have arisen for any of the firm's policyholders as a result of the suspected breaches.
The Financial Regulator confirms that the parties co-operated without delay and that the matter is now closed.
Statement from Seán Quinn:
"Quinn Insurance made loans to a related company which amounted to € 288 million in May 2008 when the accounts were finalised.
"These loans breached insurance regulations and as a result of this the Financial Regulator has sanctioned Quinn Insurance and myself.
"I accept complete responsibility for this breach of regulation.
"While I accept that I made mistakes, I feel that the levels of fines (€ 3.25 million for the company and € 0.2 million for myself) 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.
"Because of the above issues I informed the board on June 27th this year of my intention to retire from the board of Quinn Insurance.
"Whilst I will continue as chairman of Quinn Group, given the experience and capability of the existing management team, I will be able to spend more time on family assets outside the group, particularly our exciting property portfolio, which is now active in 10 countries.
"I am pleased to announce that Jim Quigley has agreed to take over from me as chairman of Quinn Insurance."
