The joint administrator appointed to Quinn Insurance said he was confident the company will be sold after several parties expressed interest in buying the business.
He also said the Irish car insurance market was likely to see price rises of about 10 per cent this year.
"In Ireland the likelihood is that the market will go up and it might be as much as 10 per cent," Michael McAteer of Grant Thornton said.
In the UK, motor insurance premiums have already risen by about 15 per cent, he said.
Mr McAteer said a number of parties from Ireland and overseas interested in buying the company have contacted Macquarie Bank in London, which is managing the sale, he told RTÉ radio today.
As reported in The Irish Times today, Quinn Insurance recorded a deficit of €788.4 million in unaudited accounts for 2009 provided to the Financial Regulator.
This involved a trading loss of €127.5 million on its underwriting activities and exceptional costs of €677.6 million relating to the write-down of certain non-core assets held by subsidiaries.
Of the trading losses on its underwriting activities, €41 million related to its business in the Republic and €86 million to the UK.
Quinn Insurance’s joint administrators at Grant Thornton yesterday moved to reassure the public about the current financial viability of the company.
They said the 2009 underwriting losses primarily resulted from increased flood claims, the introduction of the Government health levy and an increase in claims provisions in line with market trends.
The increase in asset writedowns was in line with regulatory requirements and take account of potential commitments to third parties of Quinn Insurance subsidiaries.
They added that the company is operating profitably at present and business volumes are strong both here and in the UK.
"On a month-by-month basis we are making money," joint administrator Michael McAteer told The Irish Times yesterday.
“We have introduced significant price rises in the UK and we’re very confident that the business is profitable.”
He said there had been “no significant price change” in the Irish market.
When asked if Quinn Insurance would record a profit for 2010, Mr McAteer said it would be “borderline” due to legacy issues that still have to be washed out of the business.
Mr McAteer confirmed that Quinn Insurance has already paid out in excess of €500 million in customer claims so far in 2010, and continues to process claims as normal.
The joint administrator said Quinn Insurance was “trading above its business plan”.
The stronger-than-expected volumes meant that up to 100 out of a planned 902 voluntary redundancies would not now proceed.