Price increases of around 25% have aided recovery

Quinn Insurance is back in profit following a recovery in its UK arm.

The Irish insurer – currently in the hands of administrators Grant Thornton – has moved into profit on a week-by-week basis for the first time this year.

Quinn was forced by the Irish regulator to increase prices within its UK motor insurance arm by around 25% and to remove loss-making business. This has helped the UK division to recover despite an anticipated fall in business volume.

In 2008, Quinn Insurance lost around €49m (£40m) and is expected to post losses of approximately €50m for 2009. It is unlikely that the company will post an overall profit in 2010, and it is set to be hit with a €10m charge this year to cover redundancy costs.