XL GROUP ANNOUNCES PLAN TO MOVE TO BERMUDA

Global insurer and reinsurer XL Group announced Monday that it intends to redomesticate to Bermuda from Ireland. The announcement comes six years after the group changed its named from XL Capital and moved the parent holding’s place of incorporation from the Cayman Islands to Ireland. “Establishing our corporate home in Bermuda is a natural step for XL,” said chief executive Mike McGavick. “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 our business, in fact our largest operating subsidiary, has for decades been located in Bermuda and regulated by the Bermuda Monetary Authority.” The BMA regulatory regime, he noted, was recently recognised by the European Union’s Commission, Parliament and Council as fully equivalent to the Solvency II financial reforms. With that determination, the group “concluded that the BMA is best situated to serve as XL’s group-wide supervisor and to approve XL’s internal capital model,” McGavick said. “This is a change that we believe will benefit XL’s clients, partners and shareholders alike.” Under the proposed move, Bermuda-exempted XL Group Ltd will replace XL Group plc as the ultimate holding for all XL operating companies and shares in the new holding will be swapped on a one-for-one basis for shares in the existing holding. Shares will continue to be traded on the New York Stock Exchange and the group will continue to be subject to SEC reporting requirements and NYSE corporate governance rules. The move is slated for completion during the third quarter.