Quinn Insurance profits hit €100m despite revenues dip

Quinn Insurance and subsidiaries last year returned to profit, recording pre-tax profits of €99.8m in spite of revenues more than halving to €223m.

Accounts just filed by Quinn Insurance Ltd under administration and subsidiaries show that the group recorded the pre-tax profit last year following a pre-tax loss of €117.9m in 2011 — a positive swing of €217.7m.

Revenues at the group last year reduced from €639m to €223m, mainly due to the company selling its Irish general insurance business and healthcare business.

The directors’ report states that the group’s profit last year “is mainly caused by the profit generated by the insurance business of €107m. The profit arose primarily from foreign exchange-related reserve releases and investment income.”

The report states that claims during the year decreased by €618m, from €700m in 2011 to €82m, due to the sale of the Republic of Ireland business to Liberty Insurance.

The figures show net operating expenses reduced by €58m, from €129m to €71m, “and the decrease was mainly attributable to the impact of the sale and discontinuance of all insurance business”.

The profit last year reduced the group’s accumulated losses from €1.74bn to €1.63bn.

QIL ceased to write new motor business in the UK last year.

The report states that revenues generated by the hotels, property, and environmental companies decreased from €53m in 2011 to €50m in 2012, mainly due to the sale of the Crowne Plaza in Aug 2012 — the sale of the hotel represented a gain of €2.1m.

The report discloses that QIL has formally engaged selling agents to bring the Sheraton Hotel in Krakow, Poland. and the Hilton Hotel in Sofia, Bulgaria, to market for sale. It is anticipated that the sale of both hotels will be completed by the end of the year.

The report goes on to state that the group plans to continue operating the group’s assets while availing of opportunities to conduct an orderly wind down and disposal of these assets where possible.

The numbers employed by the firms last year reduced from 2,034 to 422 and the sharp drop follows the sale of the Irish insurance business in Nov 2011.

The profit last year takes account of non-cash depreciation costs totalling €10.4m and impairment costs totalling €4.7m.

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