Quinn Insurance has been given permission for a limited re-entry into the UK insurance market following an announcement by the Irish Financial Regulator yesterday.

However, the relaxation of the regulator’s restrictions preventing Quinn from writing new business in the UK does not extend to solicitors’ professional indemnity insurance.

The regulator said that it would permit the Irish insurer to write motor insurance cover for learner drivers in the UK. It is understood that this is one of the more profitable areas of the company’s activities.

In its statement, the regulator said the decision had been made ‘after careful analysis of information provided by the administrators of Quinn Insurance Limited (QIL) in relation to important improvements in the company’s underwriting model and significant strengthening of its pricing structure’.

It said it had consulted closely with the UK’s Financial Services Authority before making the decision.

The financial regulator added that it ‘continues to work closely with the administrators of QIL in relation to their obligations to restore the company to a sound commercial and financial footing’.

A statement issued on behalf of Quinn said: ‘QIL is pleased to announce that, following a decision by the financial regulator today, it will be re-entering the UK insurance market.

‘QIL will recommence offering private motor insurance cover for provisional licence holders in the United Kingdom, including Northern Ireland. While this is a limited re-entry to the UK market, it is an important development for QIL as the UK market has been a core part of the business for the past five years.

‘The company’s business model of efficient operations, pro-active claims approach and a targeted approach to selective customer segments offers the opportunity of sustainable profitability.

‘The company would like to acknowledge the support of all stakeholders for their efforts over recent weeks as we seek to secure the future of our UK business.’

See the Law Society's website for the latest advice on Quinn.