IBRC annual report for 2011 - Irish Bank Resolution Corporation ...

Irish Bank Resolution Corporation LimitedAnnual Report & Accounts 2011* The Group's interest in the equity of these entities is greater than 50%. However, the substance and legal form of theseventures is such that they are jointly controlled entities as the approval of all joint venture parties is required for all strategicfinancial and operating decisions.AssociatesThe GroupThe Bank2011 2010 2011 2010€m €m €m €mInterests in associates - unlisted 99 - - -Following regulatory approval in late 2011 the Group agreed a joint venture with Liberty Mutual Group (‘Liberty’) to acquire theRepublic of Ireland general insurance business of Quinn Insurance Limited (Under Administration) (‘QIL’). Liberty’s controllinginterest in this arrangement exceeds 50%, while the Bank's minority interest is classified as an associate as it retains someinfluence in the joint venture. The purchase of the Bank’s interest was funded with €99m in new preference shares (note 41),the repayment of which is directly linked to the performance of this joint venture.At 31 December 2011 the Bank also has a minority interest in the manufacturing businesses of the Quinn Group. This interest isclassified as a financial asset at fair value through profit or loss (note 20).The Group's share of the assets of its associates is €99m (2010: €nil).The Group had neither capital commitments nor contingent liabilities, whether incurred jointly or otherwise, in relation to itsjoint ventures or associates at 31 December 2011 or 31 December 2010.In accordance with the European Communities (Credit Institutions: Accounts) Regulations, 1992, the Group will annex a fulllisting of its joint ventures and associates to its annual return to the Companies Registration Office in Ireland.83