More than 900 jobs are to be cut at Quinn Insurance as part of a restructuring plan the joint administrators of the company announced this afternoon.

The job cuts represent 37 per cent of the 2,400 staff across its nine operational centres in Ireland and Britain, and will be on a voluntary basis over a 12-month period. “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,” said the administrators.

About 350 employees will be affected across all locations in the first phase of the process. Blanchardstown, West Dublin,  will lose 301 jobs. The plan is to provide a severance package of four weeks pay per year of service, including bonus payments, plus statutory redundancy entitlements. Some 226 employees are to be made redundant at the company’s headquarters in Cavan, with 121 going in the first phase. 179 workers will be made redundant at the Enniskillen office with further 109 going from the company's Navan office.

The Derrylin claims divisions in Fermanagh will be cut by 27 jobs, and a further 48 are due to to go at the insurer’s Manchester office. The company's Dublin office on O’Connell Street will see staffing numbers cut by four, and further six will be made redundant in the London office. The company said it would meet with members of the employees’ representative committee on May 4th to commence consultation with employee representatives.

The administrators said projected redundancies could be reduced if more customers are won.

"Unfortunately, this process is necessary in order to sustain and grow a viable insurance business,"joint administrators Paul McCann and Michael McAteer of Grant Thornton said.

They said that they will continue to talk with the Financial Regulator in order to allow profitable business lines in Britain to be reopened. But certain loss-making lines of business will cease, they added.

"The restructuring process has taken into consideration a business plan which, we are confident, is realistic in the context of what it known and expected about conditions in our markets," the administrators said.

The administrators said they have received more than 40 expressions of interest from outside parties in buying Quinn Insurance. They say the contacts were made without being asked for and no discussions on them had yet begun.

The administrators say Quinn Insurance should be sold as a going concern as its value in its business model, its people and its claim management system.

Earlier Friday , the Quinn Group said it had 'reluctantly' decided that it should sell its Quinn Insurance business.

Quinn Group said that, in view of the funds needed to meet the requirements laid down by the Financial Regulator, the future of Quinn Insurance was probably best protected under new ownership.

"Accordingly we will be working closely with the joint administrators to see if this objective can be achieved in as short a time as possible with the hope that this will protect the maximum number of jobs,"the statement said.

The Minister for Enterprise, Trade and Innovation, Batt O’Keeffe TD, today announced the Government’s response to the voluntary redundancies announced by the administrators in Quinn Insurance. He described the announcement as ‘"evastating for the workers and their families," adding that"our thoughts are with them.’

On March 30th, the Financial regulator had applied to the High court for the appointment of provisional because Quinn Insurance had guaranteed loans other companies of the Quinn Group in breach of regulatory rules. 

Quinn Group statement: Quinn Group to consider selling Quinn Insurance:

The board of Quinn Group Limited is greatly saddened by the redundancies which are expected to be announced by the Joint Administrators of Quinn Insurance today. It has been overwhelmed by the support of its loyal staff and customer base across the Group in recent weeks and most especially by the support shown by the employees of Quinn Insurance. The thoughts of all the members of the Quinn Group Board are with those staff today.

In this connection the Board has reluctantly come to the conclusion that, in the interests of all stakeholders but especially Quinn Insurance employees, it should consider selling Quinn Insurance.

Liam McCaffrey, the Chief Executive of Quinn Group Limited said today: “Since the appointment of provisional administrators on 30th March and the confirmation of their appointment on 15th April 2010, the Group board has been considering a number of options but has now reluctantly concluded that in view of the funding required to meet the solvency requirements laid down by the Financial Regulator, the future of Quinn Insurance is probably best protected under new ownership. Accordingly we will be working closely with the Joint Administrators to see if this objective can be achieved in as short a time as possible with the hope that this will protect the maximum number of jobs.

Quinn Insurance has a robust and profitable business model with a skilled and loyal workforce. However prolonging the situation is not in anyone's interest and that is why we have reached this decision.”

Personal statement from Seán Quinn:

"Both myself and my family are devastated with today’s announcement of impending redundancies at Quinn Insurance. I would like to sincerely express my appreciation of the huge effort that staff have made in making Quinn Insurance the great success that it has been and I greatly regret what has happened in recent weeks. I would also like to personally thank all the staff and the very loyal customer base who have shown their overwhelming support as well as the thousands of people across the Country who have shown their support in various ways.

At the Group Board meeting this week we decided that given the developing situation it was in the best interest of Quinn Insurance that we would offer it for sale so as to protect the business and maintain the maximum number of jobs within it. I just hope that in time the Company will return to the dynamic business it was up until the 30th March and that employment levels will increase again in the future. Our thoughts are with all of the staff today."