THE JOINT administrators of Quinn Insurance told staff last night they would have to cut the 2,400-strong workforce as a result of only being allowed partially to re-enter the UK insurance market by the Financial Regulator.
“We are currently assessing the impact on the business and particularly staffing levels in the short, medium and longer term,” the communication from joint administrator Michael McAteer of Grant Thornton stated.
“Regrettably we will be unable to continue as we are.”
Quinn Insurance employs about 2,400 staff, of which about half work at its UK offices in Enniskillen and Manchester. Parts of its UK business are also serviced by Quinn’s offices in the Republic. This places more than half of the jobs at the insurer at risk of redundancy.
Mr McAteer said he would complete his assessment by April 30th, when he will present his plan to staff.
“In the circumstances it is critical that communication with staff is consistent and staff views are incorporated in any final decisions. Therefore, we are commencing a formal process to elect employee representatives for each site,” Mr McAteer told workers.
On Wednesday, the Financial Regulator allowed Quinn Insurance limited re-entry to the UK market for provisional drivers.
Mr McAteer welcomed this development but said it was only part of the business plan submitted to the regulator. “We will continue as a matter of urgency to liaise with the Financial Regulator in relation to other UK business lines submitted in the business plan and will keep you updated accordingly,” he added.
“As a consequence, the UK business will be significantly reduced compared to the levels prior to administration and the potential impact on some of our RoI business lines.”
Mr McAteer acknowledged that there were “challenging times ahead” but said the focus of the administrators was to ensure that the company can “continue as a going concern and [be] returned to a sound financial footing and therefore remain a significant employer”.
The Financial Regulator instructed Quinn Insurance to cease writing new business in the UK on March 30th, the day when he went to court to seek the appointment of administrators to the insurer.
Workers protested against the decision, claiming Quinn was losing €1.5 million a day due to the suspension.
The administrators sought to re-enter other parts of the motor business and return to certain commercial lines. But it is understood that they did not seek to write new business in professional indemnity insurance.
About 3,000 British lawyers are thought to hold policies with Quinn.
Late last night, Quinn Insurance acknowledged that “regrettably, staff levels are unlikely to continue as is”.