Arch Capital Group Ltd. has picked Dublin for its post-Brexit European Union headquarters. The Bermuda-based specialty insurer and reinsurer said the new offices will help ensure continuity with its EU customers once Great Britain leaves the European Union, likely in 2019.
Following discussions with the Central Bank of Ireland, Arch is applying for regulatory approval to continue from Ireland certain underwriting operations of its UK insurer, Arch Insurance Co. (Europe) Ltd., and its Gibraltar insurer, Alwyn Insurance Co. Ltd. Those operations will be carried out from an existing Ireland-based insurance platform with supplemental business licenses acquired to match those used in the current UK and Gibraltar operations.
Arch has an established footprint in Ireland with significant local experience, having established its Irish reinsurance operations there in 2008 and its insurance operations in 2012.
Arch said Ireland factored into its Brexit plans because it could help maintain continuity of cover for existing policyholders, continue access to the UK and EU markets, limit disruption for policyholders and the group’s EU insurance operations, and also build on an established regulatory supervisory relationship.
Arch’s plans to extend its existing licenses in Dublin are underway with the Central Bank of Ireland. The company said the plans are expected to be approved and in place in good time before Brexit.
“Arch has had an established presence in Ireland for the last decade, so Arch’s existing platform in Ireland was the natural choice for Arch from which to ensure continuity of the EU business currently written by its UK and Gibraltar insurance operations, including, in particular, its motor insurance business,” said Maamoun Rajeh, chairman and CEO of Arch Worldwide Reinsurance Group.
“We look forward to continuing our strong relationships with our partners and regulators in Ireland, the UK and Gibraltar and continuing to serve our policyholders throughout the EU and the UK,” he added.
“This decision provides opportunity for Arch Insurance Europe to strengthen our capabilities in Europe, alongside a continued presence in London through our existing UK operations,” said Matt Shulman, president and CEO of Arch Insurance Europe in London.
“We see strong economic fundamentals in the trading block with growth expected in manufacturing, oil and gas, and financial services in the next five years, and we know Arch can add significant value in that space,” he noted.
Through its involvement in the Lloyd’s market through Syndicate 2012, Arch said it remains committed to servicing its Lloyd’s clients through the establishment of Lloyd’s Insurance Co. in Brussels. Clients and business partners should continue to liaise with their existing market point of contact with regard to the detail of managing the transition to the new arrangements.
Source: Arch Capital Group Ltd.
*This story ran previously in our sister publication Insurance Journal.