Brit Insurance has snubbed Bermuda in its search for a new domicile and is set to move to Holland instead.

The Lloyd's of London insurer confirmed the long-anticipated move along with its annual results for 2008, saying that relocating its head office would "enhance prospects for shareholder value", according to UK newspaper The Daily Telegraph's website.

The paper said that Brit Insurance chose Holland for its favourable tax regime, European Union membership and stable fiscal policy.

In August last year, The Royal Gazette reported that Bermuda was not the insurance company's first choice as a new domicile, with CEO Dane Douetil citing the Island's political stability as a concern.

Yesterday, Mr. Douetil said the move — which he has discussed with the UK Government — would be "difficult, costly and time consuming", adding: "We have worked very hard to try to find ways of staying", claimed The Telegraph.

Robert Hiscox, chairman of Hiscox, which moved to Bermuda two years ago, claimed that Brit Insurance would send "a real message to the Government". "You're fiscally irresponsible if you don't (move). If you make your money overseas, why are you repatriating profits to pay high tax on them?" The Telegraph quoted him as saying.