DUBLIN (Reuters) - Quinn Insurance Limited, one of Ireland's largest insurance companies, said a decision to place it in provisional administration was "pre-emptive, aggressive and unnecessary".

It said it was fully able to meet all payment obligations and, excepting any consequences of the regulator's actions was on course to achieve cash profits of between 45 million ($60.42 million) and 50 million euros in the first quarter of 2010.

The head of Ireland's financial regulation is Matthew Elderfield, the former chief executive officer of the Bermuda Monetary Authority.

He had said last Tuesday that placing the firm into administration would allow it to stay open for business and run as a going concern under different management while it was put on a sound commercial and financial footing.

"At the same time, the Financial Regulator has commenced an investigation into certain matters within Quinn Insurance Ltd. that have very recently come to light," the regulator said.

The privately-held Quinn said it understood the regulator was referring to guarantees provided by certain subsidiaries of QIL, some dating back to 2005, "supporting the general indebtedness of the Quinn Group".

"These guarantees are entirely lawful, do not breach any insurance regulations, and were fully disclosed in the statutory accounts of the relevant companies," it said.

The guarantees have not been called upon and the regulator's analysis that they gave rise to a 448 million euro liability was "totally incorrect".

Ireland's financial regulator in 2008 slapped its biggest penalty yet on Quinn Insurance Ltd., ordering it to pay 3.25 million euros ($4.39 million), plus a 200,000 euro fine for Quinn Group founder Sean Quinn, one of Ireland's richest businessmen.

The regulator said at the time the fines were for breaches of regulatory requirements, "including failure to notify the Financial Regulator prior to providing loans to related companies".