Accountants and lawyers made €100m from Quinn Insurance demise, figures show

Accountants and lawyers earned fees of about €100 million from the demise of Quinn Insurance, according to figures showing the company’s collapse proved to be something of a bonanza for insolvency experts and their advisers.

The 2010 implosion of the company established by bankrupt former billionaire Seán Quinn left taxpayers on the hook for €1 billion in losses, with surcharges on home and motor policies to fund State compensation for failed insurers.

But an analysis of public and private data shows how Quinn Insurance – and litigation linked to it – became a lucrative source of fees for 13 years after ministers placed it in administration under Michael McAteer and Paul McCann, partners in accountants Grant Thornton.

The insurer was formally wound up on Monday with a High Court liquidation order, the final chapter in a saga that began when Mr Quinn lost control of an empire straddling cement, manufacturing, property, hospitality and bank interests.

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Grant Thornton declined to release 22 reports the administrators gave the court, setting out their work and tens of millions of euro in fees they received and paid out to legal and other advisers such as merchant bankers. The administrators’ solicitors McCann FitzGerald also declined access.

Despite high costs to taxpayers, their stance raises questions as to how reports on a court-mandated administration can be opened for public scrutiny.

Still, Companies Registration Office filings set out large fee payments to the administrators from their appointment at the height of the financial crisis. Such data follows figures in the administrators’ 23rd and final report to the court in March.

[ Quinn Insurance administrators got €375 per hour over 10 years for their work ]

Grant Thornton received €37.6 million including VAT between 2010 and 2023, excluding an 18-month period in 2021-2022 for which figures are still not public.

The administrators incurred almost €3.5 million in legal fees after July 2022 and €9.09 million in “legal and other fees” in 2010-2012.

They made “legal provisions” for €32.47 million in litigation costs in 2012-2015 but actual costs remain unclear. The provisions were linked to court action against former Quinn Insurance auditors PricewaterhouseCoopers for alleged negligent auditing.

PwC denied the claims but paid €54 million last year to settle the case, “inclusive” of the administrators’ costs. PwC’s legal fees were €25 million.

Grant Thornton declined requests to release the reports but said they “should be available” by asking the court.

The Irish Times approached the Courts Service for the papers, citing laws to support “fair and accurate reporting.” However, the court said it could not release them because exhibits such as the reports were not in the case file.

Grant Thornton said: “The joint administrators, as appointees of the High Court, provided progress reports to the court over the duration of the administration. These reports were considered by the High Court at every point of the process. Grant Thornton does not comment on such matters as this is a matter for the High Court.”

The Central Bank holds “some” earlier reports but insisted it was precluded by law from releasing them.