STAFF AT Quinn Insurance were told yesterday that compulsory redundancies would not be implemented at the company as sufficient interest had been received from workers for it to implement the 902 job cuts sought on a voluntary basis.
The administrators received more than 1,100 applications for redundancy from staff, well in excess of the level they had anticipated. Not all applications were accepted.
Last Friday, 170 workers left the business as part of the first phase of redundancies, with the balance set to leave in stages over the next 15 months.
The administrators of the company – Michael McAteer and Paul McCann of Grant Thornton – also told the staff that a performance-related bonus scheme, suspended in April, would be reinstated by the insurer on July 1st.
“In light of the financial position of the company, bonus levels will, however, be set at a lower level than previously,” a statement from Quinn Insurance said yesterday.
It is believed that these bonuses formed a significant part of employee earnings for Quinn staff and the administrators were keen to restore the scheme.
It was also announced yesterday that Macquarie Merchant Bank of Australia has been appointed to sell Quinn Insurance and its sister firm Quinn Healthcare as one entity.
While Quinn Healthcare is not part of the administration process, its policies are underwritten by Quinn Insurance and selling the two together is regarded as a logical move.
Quinn Group, which is controlled by the family of Seán Quinn, has agreed to the sale of both companies.
It is understood that the administrators will meet with Macquarie today to discuss how the sale process will operate and the likely timeframe for a deal.
The administrators have received 47 expressions of interest for Quinn Insurance since the administration process began on March 30th.
Last week, The Irish Timesreported that State-owned Anglo Irish Bank had held exploratory talks with US insurer Liberty Mutual about a possible joint approach to take control of Quinn Insurance in an attempt to secure repayment of €2.8 billion in loans from the Quinn family.
“Macquarie will engage with potential buyers of Quinn Insurance Ltd and will apply strict criteria to ensure confidentiality,” Quinn Insurance said.
It is understood that the administrators continue to look at the possibility of Quinn Insurance re-entering some commercial lines of business in the UK.
To date, the Financial Regulator has given them the green light to re-enter the motor market.
