Key factor to Quinn losses due to UK business, say administrators
THE UK business of Quinn Insurance is the main reason losses reached €600m for 2009, the company's accounts due to be released shortly will state.
Quinn Insurance, now in administration, will shortly have to publish two sets of accounts, covering calendar years 2009 and 2010. The Irish Independent understands both will show large net losses, €600m for 2009 and €120m for 2010.
The 2009 results will be the worst, with losses caused by Quinn's move into the UK market cited as the key factor.
The administrators were only appointed in March 2010, but despite this large losses on the UK have been included in the 2009 financial statements.
The administrators will blame the UK insurance business for the losses, stating that the business was hugely loss- making. Also, to exit from the various business lines meant Quinn Insurance had to crystallise additional losses. Quinn was particularly active in the UK solicitor's indemnity market. Investments losses will also play a part.
The 2009 results will also include a number of write-downs on the assets of a related property company. Both sets of accounts were reviewed by several actuarial firms.
The last set of accounts for Quinn Insurance -- now the subject of a bid from Anglo Irish and Liberty Mutual -- showed a retained loss of €125m.
Last night however, the Quinn family said it was inevitable large losses would be incurred once the administrators moved in last year.
"Since their appointment, the administrators have repeatedly confirmed to the High Court and publicly that they had turned the company into profit and that there were sufficient funds in the company to pay all its claims and that there would be no call on the Insurance Compensation Fund,'' said a Quinn family statement.
For their part the administrators declined to comment, but have previously talked about stabilising the firm on an operating basis, but one-off charges have pushed the business into losses, they have said.
In 2008 the company had claims outstanding of over €1bn.