The actions of the Financial Regulator have seriously undermined confidence in the entire Quinn group. Rapidly revoked credit facilities and shrinking confidence among customers are bound to follow in the wake of last week's decision by the regulator to appoint an administrator to Quinn Insurance.

If the Quinn group is making a profit of over €20m per month, it will take less than a year for it to recover the €200m asset gap in cover for policy holders' liabilities. If this is the case, the regulator's suggestion that the company may be sold is completely over the top. The company should be returned to the Quinn group as soon as its assets cover the policy holders' liability.

Surely some kind of state guarantee could be put in place until the assets have been sufficiently bolstered. The fact that 20 potential buyers expressed an interest in taking over the company the day after the regulator moved in puts a great deal of weight behind Quinn's prognosis of profitability.

The Financial Regulator's decision to stop taking new business in the UK is based on his assertion that the UK end of the business is loss-making. This claim was strongly denied by Quinn Insurance staff at a meeting with local politicians last weekend. They insist that not only is its UK insurance business profit-making, its termination puts the whole company into a loss-making scenario. There are many questions about the regulator's motives.

I believe the ruling to stop taking business in the UK was not made by the court but by the administrator and there should be no impediment to politicians or government asking that he reverse that decision.

The Quinn Group has had an immeasurable positive impact on the country. The Financial Regulator must not let populism, public blood lust or its own past ineptitude taint its attitude to Quinn Insurance.

John McCartin

Newtowngore,

Co Leitrim