Charlie Weston: Quinn worth a punt now more than ever before
THE fact that, until recently, Quinn Insurance tended to be cheaper than the other players in the market meant I was often tempted to consider that company for home, motor and private healthcare insurance.
But I have never taken out insurance with QuinnDirect or Quinn Healthcare because I have never trusted the company's finances.
However, I might now do business with the Cavan-based operation.
That is because any uncertainty around its finances will be removed as it is now being run by High Court-appointed administrators, with the newly emboldened Financial Regulator Matthew Elderfield there to keep a close eye on matters.
Down the years, many financial journalists have questioned the way Quinn Insurance group was able to undercut other players so significantly.
All queries to the company's public relations agency, WHPR, about the financial health of Quinn Insurance were met with denials, and indeed there were often threats of legal action if there was any hint in the questioning that anything was amiss with the insurance company.
The regulator should really have moved to appoint an administrator to the insurance company back in 2008 when Sean Quinn was found to be raiding the funds of the insurance company to make up for his disastrous losses on his investment in Anglo Irish Bank.
That resulted in Quinn Insurance being fined a record €3.25m by the regulator with Sean Quinn personally being fined €200,000.
The fines arose from a failure to notify the regulator of a loan of €288m from Quinn Insurance to other firms in his group.
Uncertainty
Some personal finance experts argue that the fact that Quinn Insurance is now being run by provisional administrators, appointed by the regulator, means there is uncertainty around the future of the group.
I would argue the opposite. Take solace from the fact that there have already been 20 expressions of interest in acquiring the group, with the healthcare division the most attractive if the group ends up being sold.
If you are renewing your insurance do not be put off by Quinn Insurance being in administration and the blustering of Sean Quinn about the actions of the regulator.
But do ensure in these straitened times that you scour the market before you renew any insurance, seeking at least six quotations before you can be sure you have the best deal.
- Charlie Weston
Irish Independent
