Job cuts expected at Quinn Insurance

Administrators appointed to Quinn Insurance have warned of job cuts, the embattled company revealed last night.

The multinational on Wednesday got the go-ahead to reopen part of its UK insurance business.

But the company said the administrators claimed staff levels were unlikely to stay at the current level given the reduction in the UK business.

They also highlighted the possible impact of administration on trading in this country.

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A statement said: “The administrators said that they welcomed yesterday’s decision by the Financial Regulator.

“However, they said that the UK business will be significantly reduced compared to the levels prior to administration, and that it was likely that customers’ understanding of the administration process would impact some of the company’s ROI business lines.

“As a result, and regrettably, staff levels are unlikely to continue as is.”

A spokeswoman for the employees urged Ireland’s Financial Regulator Matthew Elderfield to reopen other segments of the UK business, warning 1500 jobs were on the line.

“This news clearly signifies the start of the redundancy process,” she said.

“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.”

It is understood the assessment by the administrators will be completed by April 30 and staff notified.

The division was shut down and placed into administration amid fears from the financial regulator that Quinn Insurance Ltd (QIL) did not have sufficient funds to cover an influx of claims.

Mr Elderfield said yesterday the firm can reopen for some business and offer new policies to provisional drivers.

But the employee spokeswoman said the provisional market, although highly profitable, accounts for only 10% of NI/UK business.

“We are now 23 days out of the market and this is unacceptable,” she said.

“Although the regulator has said he is looking at the situation with urgency the fact that we are over three weeks into administration and only one small segment has been lifted would suggest otherwise.

“Failure by the regulator to act will mean the loss of up to 1,500 jobs.”

The company said the administrators were urgently continuing to liaise with Mr Elderfield to re-instate other UK business lines.

Fine Gael urged Mr Elderfield to allow the insurer to re-open more products in the UK.

Leo Varadkar, enterprise spokesman, said: “I am asking the Regulator to make a decision on the other insurance lines as swiftly as possible so that the maximal number of jobs can be secured, and I am sure he will make the right decision in each case either way.”

Mr Varadkar said he supported Mr Elderfield and respected his independence.