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QUINN-direct Insurance – Now Number 2 in the Irish market with continued growth in 2007

• PRESS STATEMENT

9 August 2007

	2007 6 months	2006 6 months	2006 Full Year
Premium Income	€483m	€385m	€779m
Underwriting Profit	€84m	€88m	€156m
Investment Gains	€49m	€35m	€156m
Pre-Tax Profit	€133m	€123m	€323m

QUINN-direct Insurance today announces that it made a Pre-Tax Profit of €133m in the six-month period to the end of June 2007, an increase of 8% over the first half of 2006. Written premium increased by 25% to €483m over the same period, including €15m from QUINN-healthcare its newly established health insurance business.

Whilst underwriting margins have understandably reduced after six successive years of premium reductions, which have halved the price of motor insurance, we are very confident of continued growth in market share in Ireland. QUINN-direct has been the main catalyst for premium reductions taking its share from 7.6% of the motor market in 2000 to 19.4% in 2006 and positioning the Company as Ireland’s second largest general insurer. However as recent premium reductions have not been matched by a similar reduction in claims cost, we would forecast continued pressure on margins in Ireland.

Our UK business continues to develop very positively and we expect to achieve further significant growth in that market. Our entry into commercial insurance in the Netherlands and Belgium is progressing well and we plan to enter the German market later this year.

The General Manager of QUINN-direct; Colin Morgan said:

“We are very pleased with the performance of the business so far in 2007. Despite the competitiveness of the insurance market we have continued to increase our market share in Ireland and the UK and are making good progress in our European business. This performance is a tremendous tribute to our staff who are our greatest asset.

We believe that our efficient operations, pro-active claims management and an understanding of our customers’ needs will allow us to remain competitive and continue to grow our market share in all markets.

QUINN-healthcare is progressing very well and we are positive about the long term prospects for the business. However we are very disappointed with the lack of Government action in addressing the State supported dominant and anti-competitive position of the VHI in the Irish health insurance market. The recently announced price increase from the VHI means that a family of four can save over €606 by switching from VHI Plan B Options to QUINN-healthcare Essential Plus (No excess).

Earlier this year the Sunday Tribune printed an article, based on a document purporting to be a memo written by Kevin Lunney, a director of the company. The Tribune’s story, based on the alleged memo, prompted a Garda investigation. We immediately advised the Tribune and the Gardai that the alleged memo was a forgery and provided clear evidence in respect of this.

As we look forward to the remainder of 2007 and beyond we remain very confident that the dedication of our staff, the robustness of our business model and the strength of our capital base will allow us to continue to grow in all the markets that we operate.”

For further information, please contact:
Brian Bell, WHPR
Tel: (01) 669 0030