Global insurer and reinsurer XL Group revealed its plans to move its principal European Union (“EU”) insurance company, XL Insurance Company (“XLICSE”), from the UK to Ireland next year in response to Brexit, subject to certain regulatory approvals.
The announcement comes following a meeting between An Taoiseach, Leo Varadkar and XL Group’s Chief Executive Officer, Mike McGavick, in Dublin today.
XL Group has had insurance operations in Dublin since 1990, when it opened its first European insurance company in the then brand new International Financial Services Centre. Later in 2006, it established XL Re Europe Limited, today XL Re Europe SE, which remains an Irish domiciled reinsurer.
Dublin was also the domicile for XL Group’s parent company between 2010 and 2016 before its new holding company, XL Group Ltd, was formed in Bermuda following XL Group’s acquisition of Bermuda based Catlin Group Limited. Today XL Group has insurance and reinsurance operations as well as corporate functions based in its office at No. 8 St. Stephen’s Green, Dublin.
XL Insurance Company SE is a wholly owned subsidiary within XL Group and provides the main insurance company platform for XL Group within Europe and Asia, operating through an international network of branches, subsidiaries and third party fronting partners. It currently has branches across Europe in France, Germany, Austria, Switzerland, Spain, Italy, Sweden, Ireland and the Netherlands writing insurance business. It is important to note that as a Societas Europaea, XL Insurance Company SE can continue as the same legal entity and move to Ireland with relative ease (subject to regulatory approvals) to the benefit of its business, clients and to brokers.
Redomesticating XL Insurance Company SE to Ireland will allow XL Group’s clients and brokers to benefit from continuity of service through its branch network in Europe, which enables it to write business in domestic markets as well as providing the infrastructure for its Global Programs business.
In the UK, XL Group will retain Catlin Insurance Company Ltd (“CICL UK”), a UK regulated insurance company, and its Lloyd’s operations (Syndicate 2003 and 3002). The combination of being able to issue Lloyd’s and CICL UK paper in the UK as well as XLICSE paper in the EU will ensure that XL Group is well positioned to work with clients and brokers to offer solutions for business that could otherwise potentially be disrupted by any loss of passporting rights as a result of the UK leaving the European Union.
Commenting, Mike McGavick said: “Since the referendum announcement we have been clear that our top priority is to provide certainty and consistency of service to our clients and brokers. Moving XL Insurance Company SE to Ireland means we deliver on that commitment.”
Continuing, Mike McGavick said: “My meeting today with An Taoiseach Leo Varadkar has only served to further enhance our relationship and our commitment to Ireland. Dublin is a natural home for us in Europe. We have a long and established presence in Ireland and we understand and respect the high quality business environment, the regulatory environment and the talent of the people here."