Strong Endorsement Of Jurisdiction’s Reputation
“XL Group’s decision to move its place of incorporation to Bermuda is a strong endorsement of our jurisdiction’s reputation,” BDA CEO Ross Webber said, while ABIR President Brad Kading said XL’s plans are a “signal that Bermuda’s insurance regulation meets critical international and bi-lateral regulatory standards.”
XL Plans To Redomicile To Bermuda
Their comments follow after XL Group plc announced yesterday that it proposes to change the parent holding company’s place of incorporation to Bermuda from Ireland.
XL’s Chief Executive Officer, Michael McGavick, said: “Establishing our corporate home in Bermuda is a natural step for XL. XL has had a presence in Bermuda since 1986, which grew significantly following the transformative transaction with Bermuda-based Catlin last year.
“A significant portion of XL’s business, in fact our largest operating subsidiary, has for decades been located in Bermuda and regulated by the Bermuda Monetary Authority [BMA], a premier regulator of global insurance and reinsurance companies.
“Further the BMA’s regulatory regime, and its expertise as an international financial regulator, has recently been acknowledged and endorsed with it being determined fully equivalent to Solvency II by the European Union’s Commission, Parliament and Council,” Mr McGavick added.
BDA CEO Ross Webber’s Comments
Ross Webber, CEO, Bermuda Business Development Agency [BDA] said, “XL Group’s decision to move its place of incorporation to Bermuda is a strong endorsement of our jurisdiction’s reputation and emphasises the importance of having achieved full regulatory equivalence under Europe’s Solvency II regime.
“Quality and experience set Bermuda far apart from other domiciles, and we’re proud to have successful global companies such as XL Catlin recognise and leverage this value and choose Bermuda as their centre of excellence. XL has a long history on our island, so it is fitting that synergy will continue and strengthen.”
ABIR President Brad Kading’s Comments
Brad Kading, President of the Association of Bermuda Insurers & Reinsurers [ABIR] said, “XL Catlin’s plans to locate its top holding company in Bermuda is a signal that Bermuda’s insurance regulation meets critical international and bi-lateral regulatory standards.
“The BMA’s success in achieving EU Solvency 2 equivalence will pay real dividends for Bermuda in terms of international regulatory recognition, insurance jobs in Bermuda, and greater global understanding that Bermuda’s insurance community provides meaningful economic contributions—both in Bermuda and in international markets where our expertise and capacity make consumer insurance markets more competitive.
“We have a lot of work yet to do, but we applaud the Bermuda government’s efforts to meet or exceed international standards, not only on financial market regulation, but also with the ever-evolving standards on tax-law transparency, cooperation and enforcement.
“The insurance underwriting that takes place in Bermuda will be of increasing importance to demonstrate the economic substance that will become a necessary ingredient of meeting international tax-compliance standards.
“We underwrite here, we pool global risk here, and we make business decisions here. Bermuda insurance regulatory law describes the necessary requirements for having a head office here and being eligible for insurance group supervision. If you want to operate an insurer with a post-office box, you don’t do it here.”
Yeah….. until they saw that little protest on East Broadway this morning
Good news for Bermuda. Let’s hope this is the start of more great things to come.
Let’s keep in mind why they have come back to Bermuda – because they didn’t like the treatment they got in Ireland! Hey Bermuda – this can happen to you. Keep that in mind.
That’s wonderful news,welcome!!