Rising claims costs force withdrawal from no profit areas
Quinn Insurance posted a €100m fall in operating profit at last year and a €150m loss from it investment portfolio, the Irish Independent reports
Operating profits at the insurance division came in at just under €86m last year, more than 55% down on the €192m in 2007. A 27% rise in claims and a 52% rise in operating expenses compared with a 15% rise in premiums earned.
Quinn was "very pleased with this result in the context of a difficult economic environment and the increase of claims costs experienced across the insurance market".
Increased claims
Claims, at more than €801m, were up because of "increased frequency of claims" coupled with the fact that higher settlement costs meant there were no releases of prior year reserves".
Sean Quinn said the insurance company had "sacrificed growth to ensure the business we write remains profitable.” Irish Insurance Federation statistics show Quinn's market share fell for the first time in 2008.
