Laya Healthcare, the country’s second largest health insurer, last year went into the red after a drop in revenues.

According to accounts lodged by Laya Healthcare Ltd, they show that the firm, then known as Quinn Healthcare Ltd, recorded a pretax loss of €1.85 million last year following a €1.9 million pre-tax profit in 2010.

The negative swing of €3.8 million follows revenues at the firm last year dropping 16 per cent from €27.8 million to €23.4 million.

The insurer, headquartered in Cork, was the subject of a management buy-out in December of last year with the support of an underwriter owned by Swiss Re.

The Quinn Healthcare business rebranded in May of this year to become Laya Healthcare and the firm has almost 450,000 members today.

Commenting on the 2011 performance yesterday, managing director of Laya Healthcare Dónal Clancy said: “2011 was an extremely challenging year for Quinn Healthcare Ltd. However, following the launch of Laya Healthcare in May 2012, our business continues to grow in a declining market and we are very excited about our future as Laya Healthcare.”

The firm confirmed that the loss was primarily driven by a reduction in commission receivable from its underwriter Quinn Insurance Ltd, which was under administration throughout 2011. The commission income accounts for 90 per cent of the revenues.

A spokeswoman said: “Since its launch in May 2012, Laya Healthcare continues to gain members in a declining market . . . Laya Healthcare is focused on continuing to grow its membership base and product offering.”