XL Group has announced its plans to move its EU headquarters to Dublin in response to Brexit.
Subject to regulatory approvals, XL said it will redomesticate its principal EU insurance company, XL Insurance Company SE (XLICSE), from the UK to Ireland in 2018. The subsidiary also serves as the company’s main operating platform in Asia.
XL has had a long established presence in Ireland, having opened its first European insurance in Dublin in 1990. In 2006, the group formed its Irish-domiciled reinsurer, XL Re Europe and still maintains other (re)insurance operations and corporate functions in Dublin.
The Irish capital was also the domicile for XL Group’s corporate headquarters between 2010 and 2016, before moving to Bermuda following XL’s acquisition of Catlin.
“Dublin is a natural home for us in Europe,” remarked XL Group CEO Mike McGavick. "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."
The company said it would retain its Catlin Insurance Company (CICL UK) and its Lloyd's Syndicates 2003 and 3002 in the UK.
It added that 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 Brexit.
XL follows in the footsteps of Beazley and Chaucer, which have both selected Dublin as the home of their post-Brexit EU bases.
While this serves as a victory for the Irish capital, which was initially expected to be the preferred location for (re)insurers looking to set up EU bases in response to the Brexit vote, the Benelux states have proved most popular, with the majority of carriers selecting Luxembourg.