Quinn planned major UK expansion

Quinn Insurance wrote to brokers outlining plans to "significantly" grow its UK business a week before the Irish Regulator banned it from writing any new business outside the Republic of Ireland, the Irish Independent reports.

Quinn Insurance commercial director Richard Stafford sent a letter to UK brokers on 25 March saying Quinn had "successfully developed and grown" its commercial book in the UK, having "diversified substantially" from its initial focus on construction to a range that covers "almost all industries".

It also said Quinn was the fourth largest provider of professional indemnity for UK solicitors, despite having traded in the UK market for just six years.

Fewer brokers

The letter detailed a strategy of reducing the number of brokers it dealt with so Quinn could "provide enhanced services, support and a competitive edge to those brokers who truly embrace the partnership model with Quinn Insurance".

"We have significant growth plans for our commercial book in the UK and feel there are many opportunities to exploit given the competitive premiums we can offer due to our efficient claims model and lower cost base when compared with our competitors," Stafford said.

The letter also explained the recent relocation of Sean Quinn (Junior) to Quinn Insurance's London office, where he was placed to "support business development initiatives".

UK business

As part of his submission to the High Court, the Regulator said the UK and Northern Ireland business had made underwriting losses of €44.4m last year and should cease renewing policies or writing new business.

Court documents also show that the UK and Northern Ireland business generated premiums of €447m last year, about 42pc of the total premiums generated by the insurance business.