An investigation was previously launched into Mr Lunney's transactions, dating back to 2005, but the settlement brings an end to the five-year enquiry according to The Irish Times.
The Central Bank declined to comment on the terms of the settlement but said the cost of the enquiry, including seven days of public hearings held in 2019, would be published "in the near future".
Mr Lunney's settlement follows the end of a similar enquiry into the transactions of former Quinn Group chief executive and Quinn Insurance director Liam McCaffrey.
Mr McCaffery received a settlement in December last year, bringing the enquiry against him to a close.
The investigation by the Central Bank into the transactions of both Mr Lunney and Mr McCaffery began in May 2015 following allegations that they had been involved in eight subsidiaries of the company providing guarantees against loans to the wider Quinn Group, without the knowledge of the insurer’s board or investment committee.
The loans for the Quinn Group in question were granted between 2005 and 2007, amounting to €1.2 billion.
In March 2010, Quinn Insurance went into liquidation before being taken over by Liberty Mutual Group.
