Administrators at Quinn Insurance tonight insisted there was no danger of the beleaguered firm going into liquidation.
In a letter to insurance brokers across the country, Paul McCann and Michael McAteer said the business was continuing to trade as a going concern and all its liabilities were being met.
“During the administration procedure, by law, Quinn Insurance Limited (QIL) cannot be placed into liquidation,” they added.
“In the history of the administration process since it was introduced in 1983, no company which has gone into administration has gone into liquidation.”
Mr McCann and Mr McAteer said suggestions from the Irish Brokers Association (IBA) that in scenarios such as liquidation Quinn Insurance’s commercial customers would have limited access to compensation were incorrect.
“We would point out to you that there is no limitation on access to the Insurance Compensation Fund during an administration,” they wrote.
“The legal position set out by the IBA is not relevant as QIL is in administration.”
The pair took over two of the insurance giant’s flagship divisions, Quinn Healthcare and Quinn Direct after the High Court in Dublin granted a request from the country’s financial watchdog last week.
“The Financial Regulator has chosen to exercise its powers to apply for the administration of QIL with a view to protecting the policyholders of the company and facilitating the placing of the business of QIL on a sound commercial and financial footing,” the letter added.
Meanwhile a planned demonstration at the Financial Regulator in Dublin tomorrow has been postponed.
It is understood employees of the firm, owned by billionaire Sean Quinn, decided to call the event off to give the regulator Matthew Elderfield time to complete a review of the move to seek administration.
A business plan compiled by senior management including Sean Quinn Junior was handed to the regulator earlier this week to assist with his review.
Some Quinn Insurance employees today staged another protest in Enniskillen, Co Fermanagh, today following the decison of the regulator to appoint provisional administrators.
The rally took place in Enniskillen town centre and follows demonstrations that were held yesterday.
Several thousand Quinn Group employees and supporters gathered in Cavan yesterday evening for a protest organised by the Chamber of Commerce, was held in Market Square and was designed to highlight the effect the ban on the firm doing business in the UK has had on companies outside the Quinn Group.
Chamber president Eamon McDwyer told the crowd that failure to restore control of Quinn Insurance to the Quinn Group would have a “hugely detrimental effect on the region”.
The High Court appointed Mr McCann and Mr McAteer as joint provisional administrators to QIL. The regulator also instructed the company to stop writing new business in the UK, which he described as “loss-making” and “unprofitable”. Staff at QIL say up to 1,500 employees are directly affected by the decision on North and UK business.
Employees also marched in Dublin yesterday in protest at the regulator's decision.