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DUBLIN (Reuters)—Leading U.S. insurer Liberty Mutual Group Inc. has agreed to buy a controlling stake in Ireland's Quinn Insurance, which was put into administration last year, the administrator said on Thursday.
Quinn Insurance was put into administration after the financial regulator expressed concern about the firm's ability to cover its liabilities.
The company is a major debtor of scandal-hit Anglo Irish Bank, which will retain a minority shareholding in the new firm.
Liberty will invest €102 million ($148.4 million) to secure 51% in a new joint venture built from Quinn Insurance assets, the Liberty Mutual Direct Insurance Co.
The administrators will invest €98 million ($142.6 million) and maintain a 24.5% stake. Anglo Irish will also take a 24.5% stake and will release assets it held as collateral.
The administrators also reported that Quinn Insurance posted a 2009 full-year loss of €706 million ($1.03 billion).
The administrator estimated this would lead to a call of €600 million ($872.9 million) on Ireland's insurance compensation fund, a levy to be imposed on the country's nonlife insurance companies.
DUBLIN (Bloomberg)—Ireland’s Quinn Group said there is “no issue” with liquidity and that addressing solvency issues at its insurance business will require €100 million ($134.9 million).