Moodys credit rating agency has upgraded its assessment of insurance group Quinn Direct, the vehicle of Co Cavan-based billionaire Seán Quinn.

The agency assigned a "positive outlook" to the group's Baa2 insurance financial strength rating of the organisation, up from the "stable outlook" it assigned last September.

"The rating action reflects further maturity of the Quinn Direct Insurance business, as seen in both sustained profitability and an enhanced business profile," Moodys said.

Analyst Stephen Hunnisett said that the continued and consistent profitability of the Quinn group - "albeit in relatively benign market conditions" - demonstrated the increasingly robust nature of the business. "This developing track record of profitability, the acquisition of a material Irish healthcare business from Bupa and the continued expansion of Quinn Direct Insurance outside the Republic of Ireland underpin the positive rating action."

Moodys said that Quinn group had sustained a combined ratio of below 95 per cent through the cycle, in addition to increased geographic diversification thanks to sales growth outside Ireland.

The agency also cited reductions in the group's exposure to equity and property assets as the most likely drivers of any subsequent ratings uplift.

It said that Quinn Direct achieved a gross written premium of €779 million during last year.