Quinn buyout deal signed

The deal to buy Quinn has been signed, with Liberty Mutual spearheading the takeover.

The €200m capital injection will be divided between Liberty Mutual, who will pump in €102m, and Anglo Irish and Quinn Insurance Limited, who will put in €98m.

Liberty Mutual now owns 51% of the business and 49% is owned jointly by Quinn Insurance Limited and Anglo Irish Bank.

All jobs in Republic of Ireland and Northern Ireland have been saved.

The group was put into administration by the Irish regulator in March 2010 after it discovered the insurance arm was making large guarantees for the property arm of Quinn group.

As part of today's deal, banks and bondholders will lift guarantees over the property business in return for €200m. The €264m remaining assets will be transferred to Quinn Insurance Limited.

The deal is expected to be completed in 12-14 weeks subject to green lights from Irish and European regulatory authorities.

Administrator Michael McAteer said: “Whilst we are confident all business written since our appointment in the UK is profitable, all bidders expressed concern around the scale of the prior year losses and the sustainability of the UK business. Consequently, QIL will remain under administration, will retain existing and future UK business, and will write profitable UK motor policies until 31st December 2012.”