Quinn picks its battle

With the news that it’s not even accepting renewals, the death knell seems to have finally sounded for Quinn in the UK. The insurer is fighting hard on its home turf, but its prospects here look bleak.

In a robust statement issued to the media last week, Quinn appeared to defend its UK business. It said: “The Financial Regulator has commented that UK business is currently unprofitable. We entirely disagree with this statement and, unless reversed, this direction will be immensely damaging to the future prospects of QIL.”

However, the administrators are firmly in charge, and their letter to brokers sent last week makes it clear that the controversial Irish insurer has effectively shut up shop.

This may be the most sensible move. The majority of Quinn’s business is done in Ireland – and, given that most of its employees are based there, Irish politicians are more likely to give it a sympathetic hearing.

It can also appease its administrators by showing willing and withdrawing from the UK as it gets its house in order. This means refinancing, putting in place proper Chinese walls between the insurance business and the rest of the group, and putting new management in place. No doubt it will also mean a less ambitious, more focused business plan going forward.

If Quinn can manage to do all this, with political support behind it and its employees protesting in the streets, it has a chance of surviving in Ireland. But don’t expect to be seeing a return to the UK market anytime soon.