The President of the High Court has been told that the possible €1.65bn call on the Insurance Compensation Fund as a result of losses at Quinn Insurance Limited in the UK may not be the worst-case scenario.

Domhnall Cullinan, head of insurance supervision at the Central Bank, said there was always the possibility the situation could look worse if further layers of the onion were peeled back.

However, he said he was satisfied the joint administrators of the company had gone through a very robust process in arriving at the figures they now had.

Mr Justice Nicholas Kearns was hearing evidence from the administrators and information from the Central Bank about how the call on the insurance fund had gone from €738m when the application came before him last October to a possible €1.65bn.

He was told the Minister for Finance had expressed frustration at the fact that the figures continued to rise at very short intervals.

In correspondence with the administrators, the minister said he was at a loss as to how such a large underestimation in the potential call on the ICF could not have been foreseen to a greater extent.

The minister wrote to the administrators in June and said the new figure was a matter of substantial concern particularly when considered in the context of the very difficult financial environment the country was now grappling with.

He said it was "remarkable" that the figure continued to climb by substantial amounts in relatively short periods of time.

In a later letter in July, the minister said he could not understand how the administrators as highly remunerated professional administrators with the support of highly remunerated actuaries and auditors could not have had greater insight into the total increased cost at an earlier stage. He said he was concerned by the manner in which the Government had been misled by incomplete information and estimation.