37% of Quinn Insurance staff face redundancy over the next 12 months

The joint administrators of Quinn Insurance have confirmed that that the company is today beginning a consultation process on a proposed redundancy programme affecting approximately 900 staff.

Grant Thornton's Paul McCann and Michael McAteer said that they “deeply regretted” that a major restructuring of operations is necessary to both safeguard the future of the company and more than 1,500 jobs across nine centres.

“This is a difficult announcement to make and a considerably more difficult announcement for the workers of Quinn Insurance to hear. The scale of what we face is considerable,” they said.

“Unfortunately, this process is necessary in order to sustain and grow a viable insurance business. While the exact number of employees that will be impacted over the next 12 months will depend on the actual business volumes achieved, it is very important to stress that our customers, both current and new, will have a direct impact on the employment levels within the business."

Click here for a breakdown of the redundancies by location

The administrators said they will continue to "engage proactively" with the Financial Regulator, and monitor business activity, in order to allow profitable business lines in the UK to be reopened. They also confirmed that certain loss-making lines of business will be discontinued entirely.

They continued: “We find ourselves with no alternative other than to commence a consultation process with employees on a proposed redundancy program that will potentially affect around 900 employees. This represents 37% of current staffing levels, over a 12-month-period across all locations. Approximately 350 employees will be affected across all locations in the first phase of the process."

“It is our intention that all redundancies that we are seeking be achieved voluntarily. The details of the packages on offer will be outlined through consultation with the Quinn Employee Representative Committees. Basic conditions will include four weeks pay per year of service on top of the usual statutory entitlements."

The administrators concluded: “We have been greatly encouraged by the significant support given to the company since our appointment just over one month ago. The more people that continue to support the company the more positive the outcome will be for the workers.

“It is difficult to determine the exact impact on the business over the next 12 months. The restructuring process has taken into consideration a business plan which, we are confident, is realistic in the context of what is known and expected about conditions in our markets.

“Quinn Insurance is a significant operator in the insurance market and will continue to employ over 1,500 people following completion of the restructuring process. The steps being taken today, although regrettable and painful for the employees of the company and their families, are necessary to ensure the long term security of these positions.”

Click here to read Sean Quinn's personal statement on the job cuts.