Mr. John David Taylorasked the Secretary of State for Trade and Industry what action he has taken to monitor the affairs of the Insurance Corporation of Ireland in the United Kingdom; if the investments by United Kingdom clients are still secure; and if he will make a statement on recent developments within that company.
§ Mr. FletcherThe Insurance Corporation of Ireland Limited has its head office in the Republic of Ireland and carries on insurance business in the United Kingdom through a branch. Under the terms of an EEC directive, the Government of the Republic of Ireland must verify the state of solvency of the company with respect to its entire business, and the United Kingdom Government have to be satisfied that the United Kingdom branch has assets at least sufficient to meet the liabilities of the branch.
The Department of Trade and Industry receives, in the form and on the basis required by United Kingdom legislation, an annual return of the business of the company carried on in the United Kingdom. The branch's return for the year ended 31 December 1983 showed its assets to be substantially in excess of its liabilities. The return for 1984 is not yet due.
According to recent statements by the company and the Irish Government, there are now substantial losses expected on the United Kingdom business. The company has been acquired by a company controlled by the Irish Government and an administrator has been appointed by the Irish court to carry on the business of the company. The Irish Government have stated that any financial assistance required to enable the company to meet its liabilities will be provided by means of the insurance compensation fund. My Department is in contact with the Irish authorities and the administrator.