Quinn's Letter To Government Ministers
‘We Believe This Action Is Highly Aggressive And Unnecessary’
Re: Appointment of Provisional Administrators by the Financial Regulator (the “Regulator”) today to Quinn Insurance Limited (“QIL”)
You will know by now that the regulator has now appointed provisional administrators to QIL. We believe this action is highly aggressive and unnecessary and will make the repayment of outstanding debt extremely difficult. It also endangers 5,500 jobs in Ireland unless immediately reversed.
We would respectfully request your attention on this as a matter of urgency today to ensure this action is rescinded immediately. In particular I would ask that you consider the following:
- The Quinn Group (the “group”) is currently among the top six companies in Ireland;
- The group is on target to achieve profits of between €1.1 billion and € 1.2 billion over the next three years;
- The group will achieve cash profits in the first quarter of 2010 of between €45 and €50 million;
- The group is on target to achieve €20 million plus in cash profits each subsequent month for the remainder of 2010;
- The group is on target to achieve a reduction in debt of €400 million in the next three years;
- The group has committed, and is on schedule, to pay back all monies borrowed to date from all institutions;
QIL will reach the necessary solvency as required by the Financial Regulator by year-end.
If this situation remains in force the damage to the business will be serious. It will mean that none of the above can be achieved and the loss to the country will be significant for many years to come.
In the context of the above and with the group having achieved above-average margins in all markets in which it has operated over 36 years, the group would seek answers to the following questions.
The group and QIL are in a position to meet all their respective obligations from a cash perspective. Why is the regulator taking this action at this time?
Why is the Government and its agencies unwilling to give the necessary time to QIL when all parties were confident that a satisfactory solution could be found?
Sent on behalf of the Quinn Group Board