Quinn Insurance was put into administration after the financial regulator expressed concern about the firm's ability to cover its liabilities. The company is a major debtor of scandal-hit Anglo Irish Bank, which will retain a minority shareholding in the new firm.
Liberty will invest 102 million euros to secure 51 percent in a new joint venture built from Quinn Insurance assets, the Liberty Mutual Direct Insurance Company. The administrators will invest 98 million euros and maintain a 24.5 percent stake. Anglo Irish will also take a 24.5 percent stake and will release assets it held as collateral.
Quinn Insurance also reported a 2009 full-year loss of 706 million euros. The administrator estimated this would lead to a call of 600 million euros on Ireland's insurance compensation fund, a levy to be imposed on the country's non-life insurance companies.