Insurer placed into administration

31 March 2010

News broke on 30th March that Quinn Insurance has been forced into Provisional Administration.

The Financial Regulator commented "The appointment of joint provisional administrators will better protect policyholders. It will allow the firm to remain open for business, to continue to be run as a going concern under different management and to put the business on a sound commercial and financial footing."

The Irish regulator said the insurer would have to cease writing any new business in the UK to prevent it "suffering further financial losses from its currently unprofitable business".

Quinn's UK branch, Quinn Insurance Limited (UK) or Quinn Direct, specialises in motor, professional indemnity insurance for solicitors and in insurance for the construction industry.

The UK Financial Services Authority reports that the Irish regulator has confirmed that existing policyholders in the UK will continue to be covered. Customers of the firm can continue to make claims and should continue to pay direct debits and premiums in the normal way.

Whilst, as a broker, Thomas, Carroll made a deliberate decision some years ago not to place its clients' insurances with Quinn, we are mindful that some brokers did place policies with them and some businesses and individuals purchased cover direct.

We are also mindful that some businesses are employing contractors who may be currently insured by Quinn.

This is clearly a fluid situation and we will endeavor through this website to keep you abreast of developments over the coming days and weeks.

In the meantime, if you have any concerns as to how this news affects you please contact Gareth Cotty on 02920 855240.

The full statement posted on the Irish Regulators website reads:

Statement 30 March 2010

Following an application by the Financial Regulator, the High Court has today appointed joint provisional administrators to Quinn Insurance Limited. The Financial Regulator has taken this action in the interests of the firm's policyholders.

Quinn Insurance Limited

Irish policyholders of Quinn Insurance Limited can continue to renew policies, carry out new business and make claims in the normal way.

The appointment of joint provisional administrators will better protect policyholders. It will allow the firm to remain open for business, to continue to be run as a going concern under different management and to put the business on a sound commercial and financial footing.

The Financial Regulator has an onsite presence in the firm to oversee its actions and to work with the new management. At the same time the Financial Regulator has commenced an investigation into certain matters within Quinn Insurance Limited that have very recently come to light.

Quinn Insurance Limited (UK)

In addition, the Financial Regulator has separately directed Quinn Insurance Limited to cease writing new business in the UK. Existing UK policyholders will not be affected by this decision as existing policies will remain valid. Customers can make claims in the normal way.

The effect of this action is to prevent Quinn Insurance Limited suffering further financial losses from its currently unprofitable UK business.

The Irish Times (irishtimes.com) reports that Council for the regulator said that the company had "significantly breached" its solvency ratios in recent months. Further concern arose following the disclosure that subsidiaries of Quinn Insurance made guarantees in relation to the group's asset which had the effect of reducing the insurer's assets by 448m euros.