THE FINANCIAL regulator says it continues to study proposals from the joint administrators of Quinn Insurance to allow the company to re-enter other parts of the UK insurance market.

This followed a communication by the administrators, Michael McAteer and Paul McCann of Grant Thornton, to staff on Thursday evening warning that redundancies were inevitable due to reduced business being done in the UK, which accounts for about 42 per cent of the insurer’s overall turnover.

“The Financial Regulator has been engaged with the administrators in recent weeks and given all proposals full consideration,” the regulator said yesterday.

“The Financial Regulator has requested further information and analysis from the administrators in relation to their proposed business plans for the UK market and will give prompt consideration to proposals backed by robust and detailed information, actuarial analysis and pricing.

“The initial focus of the administrators was to focus on the UK motor market in its plans to the Financial Regulator. Once further detailed information is provided, the Financial Regulator will examine the directions on the Quinn Insurance UK business with a view to reopening of certain profitable business lines on a phased basis, in consultation with the UK Financial Services Authority.”

No comment was available from the administrators, but it is understood that, regardless of the outcome of the regulator’s deliberations, a number of redundancies at Quinn Insurance will be announced next Friday.

The company employs 2,400 people, of whom about half are employed by its UK division in Enniskillen and Manchester.

Earlier this week, the regulator gave Quinn the green light to provide new business in the UK in the provisional driver motor market. This is a profitable line of business for the company.

The regulator had instructed Quinn to cease writing new business in the UK on March 30th.

It is understood that the administrators submitted a proposal on April 8th to allow Quinn to write new motor and commercial business. This proposal was revised and focused on motor only.

Staff representatives at Quinn Insurance said yesterday that up to 1,000 jobs had been placed at risk by the regulator’s refusal to open up other parts of the UK business.