Accounting firm to pay $110M in Irish Co. collapse. (Ernst and Young, Insurance Corporation of Ireland)

National Underwriter Property & Casualty-Risk & Benefits Management, October, 1993 by Howard, Lisa S.

The accounting firm Ernst & Young has agreed to pay $110 million in an out-of-court settlement involving the collapse of one of the largest general insurers in Ireland. Under the terms of the settlement, Ernst & Young agreed to pay $55 million to the Dublin-based Allied Irish Banks and another $55 million to the administrators of the former Insurance Corp.

of Ireland, both Allied Irish Banks and Ernst & Young announced. The bank completed a two-stage purchase of the Dublin-based Insurance Corp. of Ireland in 1983 for a total price tag of about $64.8 million. Very quickly, however, AIB found there had been "serious under-provisioning for claims by ICI," AIB said. Before ICI was put under government administration in 1985 with estimated outstanding...

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