Job loss fears at Quinn Insurance

THE joint administrator of Quinn Insurance has written to staff announcing a business assessment which will almost certainly end in job losses.

In the communication, Michael McAteer said that, while administrators welcome the financial regulator’s decision to allow Quinn limited re-entry to the British market for provisional drivers, the company’s British business will be reduced significantly compared to levels prior to administration.

“It is likely that our customers’ understanding of the administration process will impact some of the ROI business lines,” he said.

“We are currently assessing the impact on the business and particularly the staffing levels in the short, medium and longer term. Regrettably we will be unable to continue as we are.”

Mr McAteer said administrators would complete that assessment by April 30 and at that point would update staff with the findings.

No indication was given as to how many people were likely to be made redundant or when any job losses were likely to occur.

“I would like to reiterate to all staff that, whilst there are challenging times ahead, our focus is to ensure that the company can continue as an ongoing concern and returned to a sound financial footing and therefore remain a significant employer,” said Mr McAteer.

Staff representatives said the announcement clearly signified the start of a redundancy process.

“This is a devastating blow to employees who have tirelessly been campaigning for the reopening of NI/UK business so that staffing levels could be maintained,” they said.

“Fifteen hundred workers are employed to directly facilitate the NI/UK market. Today’s announcement has escalated this into a crisis situation.”

Yesterday it also emerged administrators currently in charge of Quinn Insurance (QIL) are to prepare – over the course of the next four-to-six weeks – an informational memorandum on the company for parties interested in buying the business.

Mr McAteer and his fellow administrator Paul McCann have received approximately 30 expressions of interest since being appointed, originally on a provisional basis, last month.

Despite the interested tones, any quick sale of Quinn Insurance is not being anticipated and it is thought that the company could remain in administration for a number of years.

However, it has also been reported that Anglo Irish Bank – which is owed €2.8bn by the Quinn family – is still in talks with the regulator with a view to buying the entire Quinn Group, including the insurance division.

Either way, taking into account the administrators’ aforementioned timeframe, it is unlikely any sale will occur before mid-June, at the earliest.