Quinn Group, which owns Quinn Insurance, has called on the Financial Regulator to reconsider its decision not to allow Quinn Insurance to re-start taking commercial insurance business in the UK. The group said it was 'very disappointed' by the decision.
The Central Bank and Financial Regulator said the company did not have enough capital to resume writing business in the UK commercial insurance sector. It said this conclusion was reached after a detailed review of proposals by the company's administrators.
'Should the company obtain sufficient capital and return to required solvency levels in the future, consideration may be given to reviewing this decision,' a statement from the Central Bank and Financial Regulator said.
A Quinn Group statement said commercial UK business was the insurance company's most profitable line of business, adding that today's announcement would be a huge disappointment for many customers. 'The board remains of the view that the failure to reopen the UK commercial business, even in the short-term, represents a very serious and unnecessary loss of profitable export opportunity and related export jobs,' it said.
Earlier, Quinn Insurance said employees working on UK commercial insurance would be re-deployed into other areas of the business, and there would be no further job losses as a result of the decision.
Today's decision does not affect Quinn Insurance's authorisation to write UK private motor insurance or general insurance business in Ireland.
Central Bank figures published last week showed that Quinn Insurance had an operating loss last year of €127m. When certain assets are written down the loss totalled €788m.
