AXA XL has secured in principle approval from the Central Bank of Ireland (CBI) to move its European Union (EU) insurance company, XL Insurance Company SE (XLICSE), from the UK to Ireland, ahead of the Brexit deadline.
AXA XL stated that this move will ensure that XLICSE will continue to work with its clients and brokers, offering solutions for business that that could otherwise face potential disruption, once the UK leaves the EU.
XLICSE is a subsidiary within the AXA XL division of AXA Group. It offers insurance within Europe and Asia and operates through international network of branches, subsidiaries and third-party partners.
As a Societas Europaea, XLICSE can continue as the same legal entity in Ireland.
XL Group made the announcement last September, before AXA acquired XL for €15.3bn, in March this year. The transaction is expected to bring a combined property and casualty (P&C) lines revenue of €48bn.
The acquisition was completed last month, after the shareholders approved it and all the necessary regulatory approvals were received and customary closing conditions were fulfilled.
AXA XL CEO Greg Hendrick said: “We are extremely pleased to have gained approval in principle from the CBI. We have a long and established presence in Ireland and appreciate the quality of business environment, the regulatory environment and the expertise there.
“We took the decision to redomesticate XLICSE to Ireland to ensure our clients and brokers benefit from continuity of service through our branch network in Europe. We highly value this branch network, because it enables us to write business in domestic markets as well as providing the infrastructure for our Global Programs business.”
In the UK, AXA XL will continue its XL Catlin Insurance Company UK Limited (XLCICL) which is a UK-regulated insurance company and its Lloyd’s of London operations (Syndicates 2003 and 3002).
Other insurance companies such as Tokio Marine Group, Liberty Specialty Markets, CNA Hardy, RSA and AIG announced their plans to move to Luxembourg.
MS Amlin, QBE are reportedly planning to move to Belgium, in response to Brexit.