DESPITE LOSSES, QUINN INSURANCE TRADING ROBUSTLY - Quinn Insurance has reported operating losses for last year of €127m. But when certain assets are written down the losses amount to €788m and is due to a charge on controversial inter-group guarantees that pushed Quinn Insurance into administration last Spring. But this morning the company's administrators say the firm is now operating profitably and robustly.
Administrator Michael McAteer of Grant Thornton says that Quinn Insurance's trading loss of €127m is made up of a €85m loss in the UK and a €42m loss in Ireland. He says that when the business was put into administration earlier this year, it was not able to write any new UK business. But it was granted permission to write new UK motor business in May and has increased premiums there since then. He says that in general UK insurance prices are rising right across the board and the company is planning more increases there.
Mr McAteer says he is very impressed with the infrastructure of Quinn Insurance, as well as its staff. He says that there are a number of interested parties looking at the business, but declined to say how many. He says his job is to 'mind' the company until a long term buyer can be found. He also says that the business environment continues to be very difficult especially in the discretionary spend areas like the motor trade, airlines and hospitality sector.
Mr McAteer is also examiner at Aer Arann. He says that there have been over 14 expressions of interest in the airline from international parties and adds that he is confident of finding investment for the company. He says that part of the company is still profitable.
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MORNING BRIEFS - For the insurance sector overall, figures from the Central Bank and Financial Regulator show companies' underwriting losses were €124.5m, following a profit of €121.9m a year earlier. Irish companies accounted for €21.7m of the loss. This means it cost them a lot more to do business here and premium hikes are on the way. The Central Bank's Insurance Statistical Review shows that dividends paid by insurers here to their international parent companies fell by more than 65% in 2009. Less than €560m was distributed by Irish based insurers last year, compared with €2.4 billion in 2007. Employment at insurance firms in 2009 fell by 12% to just over 13,000 in the year.
*** Japan has approved an $11 billion stimulus package to tackle deflation and help boost a recovery threatened by the surging yen. The move comes as as the government heaped pressure on the Japanese central bank to do more. The plan includes initiatives to boost consumption and employment for graduates, invest in green industries and offer support for small business. It will be financed by reserve funds, and is expected to lift the country's gross domestic product by about 0.3%, creating around 200,000 jobs in the process.
*** Deals for new export sales worth over €9m were signed by Irish firms during this week's trade mission in Russia. 30 Irish companies went on the trade mission, which was organised by Enterprise Ireland. Irish high-tech firms Digisoft, Adaptive Mobile, OpenJaw and Norkom Technologies were among those that landed lucrative new sales deals. Trinity College Dublin and Dublin Institute of Technology also announced partnership agreements with higher education institutions in Russia.
