Quinn Healthcare posts €2.1m pre-tax profit

Quinn Healthcare, the country’s second largest private health insurer, recorded pretax profits of €2.1 million in 2010, results show.

The insurer, a former subsidiary of the troubled Quinn Group, had turnover of €27.8m at December 31st, 2010, up from €26.9 million in 2009.

Bought out by senior management in December last year and now trading as Laya, the company’s profits after taxation, dividends and other gains and losses were €5 million, up from €317,135 in 2009.

The health insurer’s accounts say despite the indebtedness of its ultimate parent, Quinn Group Limited (QGL), which in December 2010 amounted to €1.3 billion and which the group could not service, the board of QGL considered it “remains appropriate” to prepare accounts as the group still had trading businesses.

The accounts also state that as Quinn Healthcare had entered into buyout talks with its senior management team, the company “does not anticipate having to settle inter-company creditor balances or other liabilities”. With net assets of €6 million, the health insurer noted it could sell these assets to pay the debts.

The healthcare company was a tied agent of Quinn Insurance Limited (QIL). With QIL placed into administration in March 2010, the accounts state that all amounts owed by QIL to Quinn Healthcare and vice versa would be waived.

The wage bill was €11.7 million, with directors’ salaries at €310,000.

Customers of the health insurer have faced two premium hikes over the past six months. The latest increase announced in January will see most of its customers hit with an increase of 6 per cent.