Liberty Mutual and Anglo to buy Quinn Insurance

A joint venture between US insurer Liberty Mutual and Anglo Irish Bank has been chosen as the preferred bidder for the general insurance business of Quinn Insurance.

The Liberty Mutual-led joint venture is subject to approval from the relevant authorities and no other offers will now be considered, a statement said.

Joint administrators Michael McAteer and Paul McCann said the Liberty Mutual led-bid would see that company wholly responsible for the operation of the new joint venture and the majority partner.

Anglo Irish Bank would have no involvement in the day to day operation of the new company but would act in a loan recovery capacity.

The administrators said: “This is good news for our customers and our staff. The new Liberty Mutual-led business will continue to operate existing product lines in the Republic of Ireland and the United Kingdom.

"Current customer policies are unaffected by today’s announcement, and in the interim QIL will continue to offer quotes and renewals as normal.”

They added: “We are pleased to be able to say that there will be no loss of jobs in either the ROI or Northern Ireland as a result of the sale process. Our goal has always been to preserve the maximum number of jobs, and we have achieved that outcome."

All 1,570 staff in ROI and Northern Ireland will transfer to the Liberty-led joint venture under TUPE (Protection of Employees’ Rights on Transfer of Undertakings) legislation.

Prior to the joint venture taking control, offices in ROI and NI will be centralised in Cavan, Enniskillen and Blanchardstown and these will continue to operate on a business as usual basis. Cavan will remain the head office of the business.

“This development will allow us all to look to a future in which the new company is on a firm footing for sustainable growth and profitability. We are confident that this bidder is the best choice for QIL, its staff, customers, and the Irish economy,” said the administrators.

Manchester staff axe

As a result of the centralisation of offices, the company’s Navan and Manchester sites will close prior to completion of the deal. All 100 staff in Navan will relocate to either Blanchardstown or Cavan depending on their current role.

Approximately 30 staff in Manchester will be offered redundancy. All affected staff will be consulted on this process, the company said.

Discussions are taking place with a view to finalising the details of the deal within the next four to six weeks with completion expected to take place at least 12 to 14 weeks thereafter subject to certain conditions.

"Until the deal is finalised, no further details of the transaction will be made available," it said.

For more, read: Irish regulator responds to Quinn sale.