The Financial Regulator has allowed Quinn Insurance to write motor insurance cover for provisional driver licence holders in Northern Ireland and the UK.
The regulator said the decision was taken after careful consideration and analysis of information provided by the administrators of Quinn Insurance in relation to important improvements in its underwriting model and significant strengthening of its pricing structure.
The Financial Regulator consulted closely with the UK's Financial Services Authority prior to making its decision.
The Financial Regulator said he continues to work closely with the administrators of Quinn Insurance as they try and restore the company to a sound commercial and financial footing.
Staff at Quinn Insurance have welcomed the decision to partially left the ban on the company doing business in Nothern Ireland and the UK.
However, a spokesperson for the staff warned that the move on its own was not enough. She said they hoped it was an indication that other areas of business would be reopened by Regulator Matthew Elderfield.
Talks between Mr Elderfield's office and the two High Court-appointed administrators to Quinn Insurance are continuing in this regard.
The provisional driver business is highly profitable but only represents about 10% of the company's business in the North and the UK.
Meanwhile, it has emerged that Quinn Insurance is to suspend the payment of performance related bonuses for a three to four month period, starting on May 1.
The development has taken place as administrators consider future structures of the business.
