Concerns go beyond debt guarantees to general business

The Irish Financial Regulator will continue its actions against Quinn Insurance even if Quinn plugs its €448m black hole, the Irish Independent reports.

Quinn and its lenders are trying to find ways to release Quinn Insurance from hundreds of millions of euro of guarantees it has that benefit the wider group. It was these that sparked the regulator’s action.

But the Irish Independent says the regulator’s concerns about Quinn are not limited to the guarantees.

Court documents

It says court documents show the regulator has been concerned about the wider Quinn Group since December, when Quinn Insurance said the group was seeking a waiver from commitments to pay back certain debts by the end of last year.

The regulator rejected a business plan from Quinn Insurance in March as "exceptionally disappointing".

The regulator's investigation covers the "non-disclosure" of the loan guarantees, the "incorrect calculation of solvency and reserves" and the "systems and controls" that allowed the guarantees to go unreported.

The regulator is to push for Quinn Insurance's administration to become indefinite at a hearing on 12 April.