Drawdown for Quinn Insurance could be €550m below estimates

The administrators of Quinn Insurance Ltd, which was previously run by now bankrupt businessman Seán Quinn, have told the Department of Finance the total drawdown from the Insurance Compensation Fund could be up to €550 million less than previously estimated.

This has emerged in a written answer from Minister for Finance Michael Noonan to Fianna's Fáil's finance spokesman Michael McGrath.

In 2012, the joint administrators, Michael McAteer and Paul McCann of Grant Thornton, indicated to the High Court the potential call on the ICF could be €1.65 billion.

Estimated drawdown

The administrators have now told the Government they are “increasingly confident” the drawdown will be between €1.1 billion and €1.3 billion. To date, the administrators have drawn down €1.158 billion from the fund, paid for by way of a 2 per cent levy on non-life insurance policies.

Separately, the Minister told Mr McGrath Grant Thornton had charged €19.3 million, including VAT, up to the end of June. It is understood €5.5 million of this was paid to Grant Thornton in the UK and about 100 staff have worked on the administration since 2010.

Mr McGrath told The Irish Times yesterday there was an "urgent need" for clarity about the levy on policies.