Central Bank investigated firm after series of complaints

COMBINED INSURANCE of Europe employs 15 people in Ireland and sold policies to protect against accident and illness through a nationwide network of “tied agents”.

The company came to the attention of the Central Bank several years ago. It was reportedly the subject of a series of complaints to the Financial Services Ombudsman.

The regulator’s investigation became public in 2010.

Based on the Merrion Road in Dublin, the firm is owned by US insurer Ace, which is based in Switzerland and Bermuda, and listed on the New York Stock Exchange.

The company said it had taken “decisive action” to correct the mis-selling and aggressive sales behaviour dating back to 2006 uncovered by the Central Bank.

A new board of directors and management team was appointed.

Company records show that five directors resigned in 2010 – Timothy O’Dea, who is based in Limerick, John Gerard Noonan, with an address in Co Tipperary, financial controller Andrew Stodhart, Susan Bertlin and non-executive director Desmond Miller.

The company paid €181,000 in compensation to directors for “loss of office” in 2010, pushing directors’ pay to €530,000 that year, the firm’s accounts show.

They were replaced by six new board members including Ian Moffatt, the chief executive appointed to work with the Central Bank.

The others are: Michael Harrison, Chris Harrison, who has an address in England, and three new non-executive board members – Abraham Hollenberg, Duncan Green and Dermot Gorman.

Company records show that while revenues have fallen in recent years, the insurer can afford to refund the €2.15 million owing to the customers in respect of 7,917 insurance policies.

Combined Insurance had gross written premiums of €76 million in 2010 and made a pretax profit of €8.5 million in 2010, bringing retained profits to €58 million.