Opening Bell: ICF shoud cover third-party claims, Bank of Ireland's sterling struggles, Virgin ditch Eir Ireland

Get up to speed with today's breaking Irish and international business news

A Government review has into the motor insurance industry has recommended that third-party claims arising from an insurer's liquidations should be taken care of by the Insurance Compensation Fund (ICF).

This would be part-funded by a direct contribution of 35% from the industry itself.

It has also been advised that administration of the ICF be handed over to the Central Bank, and that insurers be required to provide more detailed information on policies to aid Garda enforcement.

The full Review of the Framework for Motor Insurance Compensation in Ireland will be presented to the Cabinet later today.

It was penned by a working group established by the Department of Finance and the Department of Transport, Tourism and Sport in the wake of the 2014 collapse of Malta-based Setanta Insurance, when it was argued by the Law Society of Ireland that the Motor Insurers' Bureau of Ireland (MIBI) should cover the 1,700 open claims that could have cost up to €95.2m to settle.

______________________________________________________

Deutsche Bank has warned of a "marked slowdown" in Irish economic growth due to Brexit.

It has also suggested that there would be "limits" on Dublin's capacity to house financial firms leaving London.

Deutsche chief economist Mark Wall has written that tighter conditions and higher uncertainty due to the UK's decision to leave the EU will weaken housing demand in Ireland.

Deutsche said:

"There are analysts predicting outright recession in the UK. Ireland is exposed to these risks. We expect Irish GDP growth to slow from 5% this year to 2.9% in 2017. This is a marked slowdown."

"To the extent that a large negative shock to UK domestic demand hurts the Irish indigenous firms the most," the note continues, "the Irish employment base is significantly more exposed than the 14% of exports implies."

______________________________________________________

Bank of Ireland's earnings could fall by 36% in the first half of 2016, according to Davy.

The country's biggest stockbrokers has partially blamed the forecast hit on the Brexit verdict weakening the sterling.

Lower bond gains were also cited.

Davy has predicted profits will be down 43% compared with the same period in 2015.

In a note to investors, analysts Emer Lang and Diarmaid Sheridan said:

"Given the bank's pre-announcement regarding the increase in the pension deficit and that trading is continuing 'in line with expectations with asset quality continuing to improve', we expect the outlook to be the key focus of H1 2016 results.

"This will particularly be the case with regard to BOI's dividend policy and its UK strategy in light of Brexit uncertainty."

______________________________________________________

Virgin Media customers are set to lose eir Sport and BT Sport at the end of this month, as the parties fail to strike a new wholesale deal.

It means up to 300,000 Irish customers will no longer have access to coverage of Conor McGregor's UFC fights, including his rematch with Nate Diaz in August; 42 Premier League matches; FA Cup games; Champions League and Europa League games; European Rugby Champions Cup clashes; the Airtricity League coverage; and coverage of the Allianz National Hurling and Football Leagues.

Virgin has instead signed a multi-year deal with Sky for an entertainments and sports package. The new Sky Sports Mix will replace eir Sport (formerly Setanta Sports) as part of Virgin Media's basic TV package.

The channel will show select Premier League and football league games, La Liga and 2018 World Cup qualifiers.

news cards