Quinn on a spin cycle

So Quinn is in the headlines again – but this time round, it is determined to put its own spin on events. A EURO 58m loss is a bad news story in anyone’s books – but the once tight-lipped insurer was quick off the mark with a detailed letter to brokers defending its business model and track record in the UK.

The letter makes interesting reading, with chief executive Colin Morgan acknowledging the company’s reputation among its UK counterparts, saying “We have been subject to criticism from many incumbents.” That is perhaps to put it mildly.

But this time, Quinn has tried to get in before its critics have a chance. With regard to the results, Morgan writes: “While operating profit fell from EURO 161m to EURO 72m, we are very pleased with this result in the context of a difficult economic environment and the increase in claims costs experienced across the Irish market. The increase in claims costs has occurred mainly as a result of increased claims frequency and the absence of releases on prior year reserves due to higher claims settlement costs. In common with many other insurers we incurred investment losses in 2008 of EURO 130m arising from write-downs on the company’s equity and property portfolios.”

Quinn has been subject to much market speculation, following events such as the Irish regulator’s fine of both the company and its former chairman, Sean Quinn, and its decision to remove itself from the Moody’s rating agency. So its management must be only too well aware that any negative results will be pounced on.

Its new strategy of speaking out first is reminiscent of AIG UK, which, since being subject to market rumours, has adopted a pro-active approach to PR, with chief executive Lex Baugh repeatedly insisting to the press and the market that it is not slashing rates.

Now the market will be watching to see if this is the start of a new era of transparency and proactive communication – both from Quinn, and other players.