The Cavan-based Quinn Group is projecting pretax profits this year of more than €270 million from its insurance, hotel, plastics, glass and building supply interests, a spokesman said yesterday.
Such profits would amount to an increase of at least 22.17 per cent over the group's pretax profit of €221 million last year.
According to its spokesman, the rise is projected on the back of an expected increase in sales to more than €1.3 billion from €1 billion in 2004.
The group, controlled by entrepreneur Seán Quinn and his family, made the projections public yesterday after it declared pretax profits of €89 million in the first half of the year from Quinn Direct, its insurance arm in business since 1996, which has more than 300,000 customers.
The group, or some of its divisions, may be floated in part or whole in the future, although Quinn Direct general manager Kevin Lunney indicated that no decision was imminent.
"In the next five years or so, we'd probably see some decisions. He [ Mr Quinn] has previously said that some kind of decision will be made in that kind of time frame," said Mr Lunney.
The six-month insurance profit of €89 million, up from €69 million in the same period last year, reflected underwriting profits of €58 million and €31 million in investment gains on the back of €316 million in premium income.
"If we did the same in the second half, that would be a good performance," Mr Lunney said.
A similar performance in the second half of the year would bring annual premiums to €632 million from €473 million in 2004 and pretax profits to €178 million from €153 million. However, he said the second-half performance would depend on claim cost provision and investment income.
"There has been evidence that continued Government initiatives in Ireland have lowered the cost of claims on the roads and in the workplace," said Mr Lunney.
He cited the introduction of the Personal Injuries Assessment Board, which standardises the awards on certain claims, and changes to the Civil Liabilities and Courts Act, which puts a greater onus on claimants to justify the awards they seek. Quinn Direct claims to have increased its share of the motor market to 14 per cent in 2004 from 10 per cent, while its share of the commercial liability market grew to 15 per cent from 11 per cent.
With some industry players commanding a market share of more than 20 per cent, Mr Lunney said the company's objective was to grow the business in Ireland. At present, premiums are evenly split between motor and commercial insurance. Some 15 per cent of turnover is generated in the British market, where the company also aims to grow its market share.
"The next six months will see the company focus on broadening the commercial liability and property insurance business and developing its UK presence," a Quinn Direct spokesman said.
