Aspen Insurance Holdings Ltd is planning to set up a new insurance subsidiary in Ireland in response to Britain’s impending departure from the European Union.
The Bermudian-based insurer and reinsurer said today that it had applied to the Central Bank of Ireland for authorisation of the new business.
Aspen Insurance Ireland DAC will ensure that Aspen can continue serving partners and clients in the European Economic Area after Brexit, the company said. Aspen also intends to utilise the proposed Lloyd’s Belgium subsidiary through Aspen Managing Agency Ltd.
Brexit is likely to mean that insurers based in the UK will lose their EU “passporting” right, which gives them the right to service clients throughout the block from London.
Subject to regulatory approval, Aspen expects that Aspen Ireland will be operational by the first quarter of 2019.
The Dublin-based subsidiary will write classes of insurance including casualty, credit and political risk, accident and health, and commercial property, Aspen added.
Existing UK and non-EEA policies not impacted by Brexit will continue to be written within Aspen Insurance UK Ltd.
Mike Cain, Aspen’s UK CEO, said: “Aspen has had a strong local branch presence in the Republic of Ireland for many years. Dublin is, therefore, a logical fit for our new insurance subsidiary given its highly-regarded business and regulatory environment.
“Aspen Ireland, together with our use of the Lloyd’s Belgium subsidiary, will ensure that we can continue to meet the needs of our EEA clients and brokers post-Brexit.”
Aspen “does not believe that its reinsurance business will be affected by Brexit, subject to political agreements regarding Solvency II equivalence”, the company stated.