Advertise
Resources
Member, Beacon International Group, Ltd.
HAMILTON, Bermuda—XL Capital Ltd. said Tuesday that it plans to redomesticate from the Cayman Islands to Ireland, a move to a jurisdiction the insurer said provides a stable legal and regulatory environment while boosting its reputation as a global insurer.
The company said it will change its name after the move to XL Group P.L.C.
The redomestication will not affect XL's operations in Hamilton, Bermuda, said XL CEO Michael S. McGavick. “We expect our Bermuda operations to continue on as they are. We don't think this will have a significant impact on our operations around the world,” he said.
The insurer expects to submit the redomestication plan to shareholders and regulatory authorities and complete the transaction on July 1.
“We have had a substantial presence in Ireland back to 1990,” Mr. McGavick said. “It was our point of entry into the European market.” Ireland's “strong presence in the international community” along with a “very broad set of trade and tax treaties” makes it a more attractive location than the Cayman Islands, he said.
In a statement, Mr. McGavick said the move will “reduce certain risks that may impact us,” but he would not elaborate on those “certain risks” in an interview. He said the fundamental reason for the move is to incorporate in the jurisdiction that provides the best opportunity for XL to support its platform. “I don't expect the change to have an impact on our level of tax,” he said.
XL will continue to be subject to U.S. Securities & Exchange Commission reporting requirements and report financial results in U.S. dollars under generally accepted accounting principles, in addition to any Irish reporting requirements.