The High Court has approved the repayment of €87 million to the State’s Insurance Compensation Fund (ICF) arising from the near complete 27-year administration of insurance company Icarom plc, formerly the Insurance Corporation of Ireland.
The President of the High Court, Mr Justice Nicholas Kearns, noted yesterday this was a very lengthy administration and he was sure the Minister for Finance would be “delighted” to hear of the €87 million repayment.
Ian Finlay SC, for administrator Donal O’Connor, said that following a crisis situation the company was placed into administration over St Patrick’s weekend in 1985, when the stock markets were closed. It was expected the administration would finish early next year and the company would be dissolved.
Due to completion of business and liability transfers, the administrator was in a position to repay some €87 million to the ICF now and expected a further €1.4 million would be paid later, he said. The administrator expected to make various other applications to the court in January.
The €87 million payment follows High Court approval on November 27th last of a portfolio transfer of all of Icarom’s insurance liabilities to EIFlow Insurance Ltd (EIFlow), for payment of some €17 million. That transfer completed this week, was approved by the Minister for Finance and followed a consultation process with the relevant regulatory authorities as required by insurance legislation.
Icarom has now disposed of its entire insurance business, has no remaining insurance liabilities and the administrator is therefore in a position to bring the administration to a close, he said. Icarom was formerly ICI, which collapsed in the 1980s, leading to an insurance levy being imposed.
When Icarom was first placed in administration, there was great concern about the future of the company and what the ultimate cost to the taxpayer would be, Mr O’Connor said in a statement.
The actual out-turn was “significantly better than originally envisaged”, with both the life assurance and the general insurance businesses continuing to operate under new ownership and €87 million being returned to the State.
