Zurich tipped to buy Quinn

Zurich Insurance has been tipped as the favourite to buy Quinn Insurance from administration after the joint bid from Anglo Irish Bank and Liberty Mutual faces regulatory problems, according to the Sunday Tribune.

It is understood the number of bidders has been narrowed down to Anglo/Liberty and Zurich by Quinn administrators and banking adviser Macquarie.

Regulatory officials oppose any bid involving Anglo due to its lack of insurance expertise and past regulatory history.

Anglo's bid for Quinn Insurance has not been approved by the National Treasury Management Agency (NMTA) because the bank has not yet made a final submission, according to the Irish Independent.

It is understood that Anglo wants to submit a bid by the end of the week and that Anglo's core proposal is finalised.

Anglo believes this deal, which will see Liberty stump up a significant amount of the €600m needed to recapitalise QIL, represents the best result for the taxpayer and has the best chance of being approved by the regulator.

The nationalised bank is trying to secure repayment of a €2.8bn loan owed by the Quinn family, while also minimising the upfront contribution from the taxpayer and minimising the risk of future losses.

However the Sunday Business Post this morning reported that NTMA has thrown its weight behind the bid from Anglo Irish Bank and Liberty Mutual.

Sources told the paper that the Anglo/ Liberty bid was ‘‘fully backed, fully financed and has reached regulatory approval’’, meaning a deal could be completed quickly if it was chosen as the preferred bidder.