Quinn treatment 'not heavy-handed' says watchdog

Quinn Insurance employs 600 people in County Fermanagh

The Irish Financial Regulator has denied being heavy-handed in his treatment of tycoon Sean Quinn and his insurance company.

Matthew Elderfield told an Irish parliamentary committee: "My statutory responsibility is to the 1.3 million policy holders."

Mr Quinn has said jobs will be lost if restrictions on insurance writing in the UK are not lifted by next week.

He said he was confident his group could come up with a plan to save jobs.

About 600 people are employed by Quinn Insurance in County Fermanagh.

Earlier this month, Quinn Insurance was placed into administration after the regulator said he believed its assets had been overstated by about 450 million euros.

What would be more hurtful to me personally is the number of jobs that were created in the area for the last 30 years and to see them being lost Sean Quinn The threat to the House of Quinn

Mr Elderfield said this meant a potential shortfall in the company's ability to meet claims against it.

Mr Quinn insisted he had no problem paying back his debts because his group was making profits of between 400 and 500m euros a year.

After the ruling, the company was ordered not to write any new UK business.

In a new interview, Mr Quinn told this week's Anglo-Celt newspaper in Cavan his immediate priority was getting the company back into the full ownership of the Quinn Group and his family, rather than the removal of the administrators.

"What would be more hurtful to me personally is the number of jobs that were created in the area for the last 30 years and to see them being lost," he said.

"That would be a bigger problem for me than it would to have a few pound extra."

I have said all along in discussions with the company: 'Show me the money and we will take a different approach', but no one has been forthcoming Matthew Elderfield Financial Regulator

Mr Elderfield told an Oireachtas committee on Wednesday he remained "open to dialogue" to address Quinn Insurance's solvency deficit.

Cavan-Monaghan Senator Diarmuid Wilson accused Mr Elderfield of being "heavy-handed" and acting with haste.

However, Mr Elderfield said Quinn Insurance had persistently broken "long-standing" solvency rules.

He said the company would not be given more time to improve its solvency levels, saying "we don't give favours".

Other companies had to adhere to the same standards which Quinn had failed to meet, he added.

"I have said all along in discussions with the company: 'Show me the money and we will take a different approach', but no one has been forthcoming," he said.

In his first appearance before a parliamentary committee since his appointment in January, Mr Elderfield said was "very sympathetic" to the plight of the 5,500 workers employed by the Quinn Group across Ireland, but he had to ensure policyholders were protected.

As well as the insurance section, Quinn Group includes companies selling other products such as cement.

It is one of the biggest employers in Fermanagh, where Mr Quinn grew up and neighbouring Cavan, where he now lives.

On Monday a hearing at the High Court in Dublin into whether Quinn Insurance should be put into permanent administration was postponed.

The case will come before the court again next week.

The firm says it needs around 150m euros to meet the solvency level requested by the financial regulator.

Some Irish financial media reports suggest this figure is closer to 700m euros.

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