Quinn Insurance may not recommence underwriting commercial insurance policies in the UK as it does not have sufficient capital, the Financial Regulator said today.
The regulator turned down an application from the firm, which entered administration in March, as the capital required to re-enter the market was not available to it.
"Should the company obtain sufficient capital and return to required solvency levels in the future, consideration may be given to reviewing this decision," the regulator said in a statement.
"This decision does not affect QIL's authorisation to write UK private motor insurance or general insurance business in Ireland, and its settlement of claims on extant UK commercial business will continue unaffected."
Quinn Insurance recorded a deficit of €788.4 million last year according to unaudited accounts.
The firm made 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 last year.
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 said the company remained financially viable despite the losses.
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 costs of its administration process are running at €400,000 a month.
