Quinn Direct profits surge 39% to €89m

QUINN Direct has reported pre-tax profits of €89m for the first half of 2005, an increase of nearly 39% on the same period last year.

The company now has 300,000 clients on its books and is expanding in Britain, which has been targeted as a second major market for the general insurance operator.

It started selling car insurance there at the start of this year and is also active in the commercial insurance market.

Written premium income grew by 30% to €416m, with the group’s customer base accounting for 14% of the motor insurance market. The group said it intends to broaden its commercial liability and property insurance businesses.

Its share of that market currently stands at 15%. In the period under review Quinn Direct’s underwriting profit rose from €46m to €58m.

This was attributed to recent initiatives by the Government and industry that has resulted in a lower cost of claims for road accidents, as well as to its own strong competitive base.

General manager of the group Kevin Lunney said more needed to be done to enforce the penalty points system and about speed cameras. It was also time a properly designated traffic corps was introduced to ensure greater road safety, he said.

In the case of commercial insurance, the cost of claims was down also and the group continues to expand its reach into service areas such as hotels. It also provides cover to big construction companies, reflecting the involvement of owner Sean Quinn in that sector.

The results demonstrate the group’s ability to sustain growth in a market that has become increasingly competitive, said Mr Lunney.

In the period ahead, the company will broaden the commercial liability and property insurance end of the business while continuing to develop its business in Britain from its current modest levels.

In its statement yesterday, the group said quality customer service and a competitive cost structure were the main factors driving its growth.

It has invested further in call centre technology and staff training.

The group currently operates from five offices in Ireland and Britain, where 1,200 people are employed.

It will soon open its latest centre in Enniskillen, where it has the capacity to employ 700. Last year the group built up its share of the Irish motor insurance market from 10% to 14%, while its stake of the liability sector grew to 15% over the period.

Last year the Quinn Group overall achieved sales of €1bn and profits before tax of €211m. This year it expects to achieve turnover of €1.3bn and profits before tax of €270m, a group spokesman said.