XL Group plc’s shareholders approved plans to change its place of incorporation from Ireland to Bermuda, a process it hopes to complete in the 2016 third quarter.
That doesn’t mean that XL Group is ready to move just yet. A corporate headquarters change also depends on conditions set by the High Court of Ireland, which is scheduled for July 20.
The holding company for the newly merged XL Catlin first disclosed plans in February to move its corporate headquarters. Shareholders also signed off on other regulatory requirements needed to get the process in motion, the company said.
A lot of the changes are technical. For example, a new Bermuda-exempted company, XL Group Ltd., will replace XL Group plc as the holding company for XL Catlin and its affiliates. The company’s ordinary shareholders will receive one common share of the new Bermuda company for each ordinary share they hold.
XL Group’s $4 billion merger with Catlin in 2015 led to the insurer/reinsurer’s decision to shift its headquarters from Ireland to Bermuda. While XL has had robust Bermuda operations since 1986, they grew substantially larger after XL became XL Catlin. XL Catlin CEO Michael McGavick has also said a determination that Bermuda is fully equivalent to the European Union’s Solvency II regulations on minimum capital standards was a factor. Solvency II kicked in this year.
XL previously moved its place of incorporation from the Cayman Islands to Ireland in 2010.
Source: XL Group