DUBLIN, Dec 15 (Reuters) - An increasing number of global insurance groups are considering moving to Ireland and some may chose it rather than Britain as the location for their European headquarters, Ireland’s central bank said on Thursday.
Ireland is one of a handful of European countries that may benefit from companies moving business away from Britain after its vote to leave the European Union and the central bank has said it has seen a material increase in queries from financial services firms.
“An increasing number of global insurance groups are considering seeking a new authorisation in Ireland, particularly to locate their headquarters for European business in Ireland rather than the UK,” the central bank said in its biannual macro-financial review of the economy.
Insurers are reliant on so-called passporting rights to sell insurance policies throughout the European Union and several have said they will need to set up EU subsidiaries if Britain loses access to the single market.
The Lloyd’s of London insurance market, underwriters Hiscox and Beazley, U.S. insurer AIG and motor insurer Admiral have said they might shift operations from London to centres like Dublin.
The central bank said Ireland may also be the preferred location of some UK banks that choose to relocate within the EU and may be a jurisdiction of choice for some UK funds that will likely seek to re-domicile elsewhere in the EU.
It reiterated that owing to the economy’s close trade ties to Britain, Brexit will have a negative impact on employment, output and incomes in Ireland, even though financial market tensions have eased somewhat since the June 23 vote. (Reporting by Padraic Halpin; editing by Susan Thomas)