UK insurer Hiscox has announced that its shareholders have approved the company's proposed relocation to Bermuda, plans for which were made public in September.
Following word of the proposed move, Hiscox plc posted a circular to shareholders setting out details of the corporate reorganization in October. The insurer plans to introduce a new Bermudian domiciled holding company for the group, Hiscox Ltd.
Having clearly received the contents of this circular well, Hiscox’ shareholders have now approved the proposed move, casting their vote in favor of the plans at a court meeting and extraordinary general meeting (EGM).
Of the votes cast at the court meeting, 99.99% were in favor of the corporate reorganization and 0.01% were against, Hiscox revealed. At the EGM, the resolution was passed unanimously by shareholders in attendance, having received valid proxies representing 98.5% votes in favor and 1.5% votes against.
Subject to the high court sanctioning the scheme on December 11, 2006 and the scheme becoming effective, it is expected that the shares in Hiscox Ltd will be admitted to trading on the London Stock Exchange on December 12, 2006. Hiscox intends to make an announcement at this time confirming this event and the completion of the corporate reorganization.
Bermuda is a popular choice for many leading insurance companies due to its tax benefits. For example, Aon, ACE, Hannover Re and Marsh Global Markets are among the other insurers to have operations in the territory.