A joint venture of US insurer Liberty Mutual and State-owned Anglo Irish Bank has been confirmed as the preferred bidder for the general insurance business of Quinn Insurance Ltd (QIL).

While the deal has yet to be finalised, and the contracts of sale have yet to be signed it is envisaged that there will no job losses in either the Republic or Northern Ireland as a result of the sales process.

All 1,570 employees are to transfer to the new commercial entity. While it is proposed that Quinn Insurance's offices in Navan and Manchester would close, the 100 staff in Navan will be offered positions at Cavan or Blanchardstown. Approximately 30 staff in Manchester are to be offered redundancy.

If successful, the bid would see Liberty Mutual, the fifth largest insurer in the US, take complete responsibility for the operation of the new business. Joint administrators Michael McAteer and Paul McCann said Anglo Irish Bank would have no involvement in the day-to-day operation of the new company, but would act in a loan recovery capacity.

"This development will allow us all to look to a future in which the new company is on a firm footing for sustainable growth and profitability," the administrators said. "We are confident that this bidder is the best choice for QIL, its staff, customers, and the Irish economy."

The Central Bank said the announcement does not affect policyholders of QIL, Quinn Healthcare or Quinn Life Direct. These policyholders can continue to renew policies, take out new business and make claims in the normal way, it said. The administrators said QIL will continue to offer quotes and renewals as normal.

The details of the deal are expected to be finalised within the next four to six weeks, while completion will take a further 12 to 14 weeks. The bid is subject to approval from the relevant authorities.

The joint administrators have been running the insurer since it was placed in administration twelve months ago by the Financial Regulator and have hired Merchant bankers Macquarie Capital Europe Ltd to help sell the group.

Last January, the court heard Macquarie had initially identified 90 prospective buyers for Quinn but that number had been narrowed down and an "end was in sight" in relation to finding a preferred bidder.