The administrators of Quinn Insurance have started legal proceedings against Milliman, an international consulting group that was actuary to the insurer before it went into administration in 2010, according to the Sunday Times.
The professional negligence action relates to Milliman’s role as “signing actuary” to Quinn. The paper reports that Michael McAteer, one of the Grand Thornton administrators, confirmed the case had been filed. It follows the launch of proceedings against PwC, former auditor at Quinn Insurance.
BoI to restrict mortgages
Bank of Ireland is to restrict the amount it will lend to certain mortgage applicants from this week, according to the Sunday Business Post. It reports that the bank, and its subsidiary ICS Building Society, is to reduce the income multiples allowed for mortgage applications, particularly from lower-income applicants. For example, a first-time buyer on €30,000 will now only be able to borrow 3.5 times their salary. Previously the norm was up to four times salary.
Consumer debt up
The average consumer now owes more than four times what they did in 2008 and people in most counties have sunk further into debt since then, according to figures reported in the Sunday Independent.
According to the report, the average debt is €10,600 with Waterford, Cavan and Leitrim the most debt-laden counties in the State. Five years ago the average consumer debt was only €2,442.
Defaulter crackdown
Two of the country’s largest banks are expected to issue up to 5,000 legal letters in the coming weeks as part of a crackdown on strategic defaulters on mortgages, according to the Sunday Times.
AIB and Ulster Bank will send the letters as part of a campaign to encourage borrowers in default to engage with them on a possible restructuring of their mortgages – or face repossession proceedings.
Outsider for Central Bank
Speculation is growing that an outsider will be appointed to replace Matthew Elderfield as deputy governor in charge of financial regulation at the Central Bank. The Sunday Business Post reports that final negotiations are under way with his successor and an announcement is understood to be imminent. Among possible candidates from outside the bank is Michael Ryan, an Irishman who is chief executive of the Qatar Financial Centre Regulatory Authority.
Low UK inflation outlook
The Bank of England is expected to raise its growth forecasts and lower its inflation outlook this week as the governor unveils a radical commitment to lower rates, according to the Sunday Telegraph. On Wednesday, Mark Carney will reveal the central bank's "unconventional policy". It's expected a commitment to keep rates at their record low of 0.5 per cent for an extended period will be made alongside the Bank's quarterly update on the UK economic outlook.
