Quinn to continue issuing new PI insurance UK policies

One Irish professional indemnity insurance provider recently announced it would continue issuing policies in the UK until the end of next year, despite its new owners only purchasing the company’s operations in Ireland.

Professional liability insurance provider, Quinn Insurance, made the claim shortly after news emerged that US insurance firm Liberty Mutual and Anglo Irish Bank are planning to take over substantial parts of the insurer’s business.  Initially taking on Quinn’s Republic of Ireland business insurance book, Liberty and Anglo will have the ability to exercise the option to purchase the UK business of the insurer at the end of 2012.

According to a recent article appearing in the Irish Independent, the administrators of Quinn Insurance will persist in writing new business in the UK until the end of next year.  The reasoning behind the decision is to not only maintain jobs, but also to make the business as attractive to buyers as possible.

2009 losses for the UK business were reported to be €559 million.  The massive losses prompted Quinn Insurance into a withdrawal from key areas of cover such as professional indemnity insurance for solicitors.

The administrators for the insurer are more than likely going to focus their efforts on private car insurance in Northern Ireland and Great Britain going forward.  One source reported that since Quinn has no desire to write unprofitable business, the insurer has given up huge market share in the UK – but redundancies have been avoided by keeping the UK business going for the present time.

The book will continue to be serviced by the hundreds of Quinn staff that work on the insurance provider’s UK business through to the last days of 2012.  These staff members will, once the sale is finalised in September, be working on behalf of the administrators, insider sources said.

If Liberty and Anglo choose not to take on the UK book, they’ll be left with an infrastructure that doesn’t match the volume of business they have today, the source remarked.

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