The headline’s not a typo, kids. Irish Times reports that Grant Thornton actuaries looked at rates at the failed insurer Quinn Insurance’s commercial business and found them, er, inadequate.
Quinn Insurance would have to increase its UK commercial premiums by up to 2,000pc to make the business viable, the stricken insurer’s administrators have admitted.
To invert the math a little bit, that’s like saying Quinn sold a dollar’s worth of insurance for a little under five cents. Standard disclaimer: No actual actuaries were used in the making of the original rate.
In an unrelated announcement, the Finnish company Sampo denies it’s in the running for Quinn Insurance, the big Irish p/c company that regulators took over in April. Usually Sampo doesn’t comment on market rumors, but this time it made an exception.
Meanwhile, Liberty Mutual – which has acknowledged its interest – puts on the pressure. CEO Ted Kelly tells Ireland’s Financial Regulator:
The longer a company stays in administration, the more damaged the goods become.
Update: The Financial Regulator also wants to look at Quinn Life’s investment in a Ukrainian property fund that makes up 6% of its asset base. From the Irish Independent:
It is the company’s only fund that is not managed by independent custodians.
Quinn Life said it was “confident that it will be resolved to the satisfaction of the regulator and will have no implications for the company’s policyholders”.