MR SEAN Quinn's new insurance company has received its licence to write general insurance and has just opened for business. Quinn Direct Insurance, set up by the Fermanagh based cement to hotels entrepreneur, opened its first outlet in Cavan town on Tuesday. A telesales service and a Dublin office will open in March.
Quinn Direct is the first new" Irish general insurance company to be set up since Mr John Bourke came back from America and set up Celtic International Insurance in Galway in 1982. The general manager of the new company is Mr Noel Corley, who has worked as a consultant in the industry, while the chief underwriter, Mr Ray Foley, has worked with Cigna and brokers Coyle Hamilton. Mr Quinn is chairman and managing director.
Mr David Mackey, the general manager of the Sean Quinn Group, confirmed the company had been licensed to write general insurance business. The company was offering household and private motor insurance as well as the full range of commercial insurance, he said. "We are doing it in a quiet, controlled way and letting it develop slowly", he said.
The new company is selling directly to the public and is not using brokers or other agents. The telesales operation will be based at the company headquarters a 15,000 sq ft building currently under construction just outside Cavan town near the Kilmore Hotel, which is owned by the Quinn group.
Quinn Direct also plans to sell into Northern Ireland from the Quinn group headquarters in Derrylin in Fermanagh.
The new company is not a subsidiary of the Quinn group. It has been set up as a separate company, Mr, Mackey said. He declined to dispose details of the licence requirements such as the capital backing for the new company. He would not comment either on whether there were any restrictions on the volume or type of business the new company could write. "We presented four business plan to the Department and the licence was given on the basis of that plan," he said.
Quinn Direct employs 15 people and further recruitment is expected as the business develops. Swiss Re is providing reinsurance for the company. The new company is not insuring the Quinn group businesses because "of existing commitments there". But Mr Mackey said "We are keeping our options open."
The company will offer commercial property, liability, motor and household insurance and other products. About 30 companies are active in the Irish general insurance market.
According to latest official figures the insurance industry annual report the Blue Book for 1994, the market generated total premium income of £1.06 billion but, after expenses of £1.09 billion, including claims of £858 million, recorded underwriting losses of £61 million. Accident, health, fire and property insurance were profitable while motor, marine, aviation and liability insurance recorded losses.
The commercial property market generates annual premium income of about £140 million a year, while annual premium income from employers liability is about £95 million and public liability generates abut £100 million a year.
Motor insurance generates about £620 million, broken down into about £420 million from private motorists and £200 million from commercial vehicles.
Quinn Direct will be the fifth insurance company to enter the direct insurance market in Ireland. The French owned company Touchline, which opened for business in January 1995, was the first into the market. It was followed by the AGF Irish Life owned First Call Direct, Guardian Direct and Celtic Direct which is part of the Eureko group.
The Bank of Ireland subsidiary, Premier Direct, was the first to offer customers direct insurance, but it acts as a broker rather than an insurance company and the risks are underwritten by Cornhill insurance. Touch line recently forecast that direct companies would have 80,000 policyholders or about 12 per cent of the market by the end of 1996.
