Quinn to decide on re-entry into commercial lines on Monday

Quinn Insurance will announce its decision over whether to open its commercial lines business on Monday.

It comes as the Insurer announced a €127.5m operating loss as the firm was hit by the Irish floods and having to strengthen reserves in 2009; it was also hit by a €677m writedown owing to guarantees made to other parts of the Quinn group.

But the insurer said there would be no more job losses ‘due to the strong performance of other business areas’. Quinn has told staff a decision on commercial lines re-entry into the UK will be announced on Monday.

A spokesman said: “Quinn Insurance Limited (under administration) [QIL] informed its employees today that the Central Bank and Financial Regulator has confirmed that a formal communication will be issued by their office on Monday, 13 September in relation to the reopening of commercial insurance business in the UK.

“The company also advised employees that having considered all of the possible outcomes, and regardless of the decision of the Central Bank and Financial Regulator, it does not envisage any further job losses due to the strong performance of other business areas

“QIL will advise all employees of the outcome of the communication as soon as it is received and will issue a further response statement at that time.”

Quinn’s draft results for 2009 revealed profitability was hit by a number of factors 2009. The introduction of the health levy and the flooding in late 2009 affected the results of its Irish business. The overall results were hit by a need to increase claims provisions “in line with market trends.”

The €677m writedown reflects the impact of potential commitments given by a number of Quinn subsidiary companies to third parties, the company said. It added that the amount may be reviewed before the finalisation of the 2009 accounts later this year.

Quinn added that the writedown does not affect the company’s current performance or impact policyholders in any way. It said the company is currently underwriting at a profitable level. As part of the administration process, Quinn has reviewed the business with an actuarial team and said it is satisfied that all business segments in all jurisdictions where it operates are now profitable.