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XL Group proposes redomestication to Bermuda

XL Group is proposing to change the parent holding company's place of incorporation from Ireland to Bermuda.

The company, which has had a presence in Bermuda since 1986, this morning announced that it proposes to change the parent holding company's place of incorporation to Bermuda.

“Establishing our corporate home in Bermuda is a natural step for XL,” said Michael McGavick, chief executive officer.

“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, 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.”

In a statement, Mr McGavick continued: “Following the Catlin transaction, and with the recent determination of full Solvency II equivalence for Bermuda, it has been concluded that the BMA is best situated to serve as XL's group-wide supervisor and to approve XL's internal capital model. This is a change that we believe will benefit XL's clients, partners, and shareholders alike.”

XL said it does not expect the redomestication will have any material impact on its financial results, including the company's global effective tax rate.

To effect the redomestication, a Bermuda exempted company, XL Group Ltd, would replace XL Group plc as the ultimate holding company of the XL group of companies, and the company's ordinary shareholders would receive one common share of the new Bermuda company in exchange for each ordinary share of the Company held by them.

XL expects to submit the proposal for redomestication, along with related proposals, to its shareholders in the next several months and complete the transaction in the third quarter of 2016. The proposed redomestication will be subject to receipt of necessary regulatory approvals, approval by ordinary shareholders, satisfaction of other conditions and sanctioning by the High Court of Ireland.

XL will continue to be registered with the US Securities and Exchange Commission and be subject to SEC reporting requirements applicable to domestic registrants.

The company's shares will continue to trade on the New York Stock Exchange under the ticker symbol XL.

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Published February 29, 2016 at 11:23 am (Updated February 29, 2016 at 11:23 am)

XL Group proposes redomestication to Bermuda

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