Morgan quits as chief executive of Quinn Insurance

 

COLIN MORGAN has stepped down as chief executive of Quinn Insurance after seven years with the business.

Mr Morgan said he wanted to “pursue other opportunities”, in a statement released yesterday.

However, with the Cavan-based insurer now being run by its joint administrators – Michael McAteer and Paul McCann of Grant Thornton – and effectively up for sale, it is understood that Mr Morgan decided there was no role for him to play in the business going forward.

It is thought that the administrators have no plans to replace Mr Morgan.

In his statement, Mr Morgan said: “This has been a very difficult decision to make, but given the changes that have occurred in recent months I feel it is an opportune time for me to pursue other opportunities in my career.

“I have enjoyed the successes and challenges at Quinn Insurance, and firmly believe that this business will recover from its current difficulties and, in some form or other, go on to achieve long-term success given the strength of the business model and the quality of the people.”

Mr Morgan is expected to avail of the voluntary redundancy package that has been offered by Quinn Insurance’s joint administrators as they seek to reduce the company’s workforce.

They are seeking 900 redundancies across its operations in Ireland and Britain.

It is understood that there has been a “very strong” level of interest in the redundancy package on offer, with the result that the administrators are hopeful that no compulsory redundancies will be necessary to reach their target.

Separately, the administrators continue to work on an information memorandum (IM) on the sale of Quinn Insurance for distribution to those parties which have expressed an interest in buying the business.

It is believed that 47 expressions of interest have been received, including from Anglo Irish Bank. The IM is expected to be issued next month.

The board of Quinn Group, which is controlled by the family of Seán Quinn, has signalled that it is prepared to sell the business, although approval for any deal will have to be received from the High Court.

It will also need the approval of the Financial Regulator.

Quinn Insurance lost €44 million last year. The regulator sought to have joint administrators appointed on March 30th after the insurer had failed to comply with its solvency ratios.