The British company transferring assets of £ 1 billion to Ireland as Brexit looms



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Stock image of London skyline city. (Jonathan Brady / PA)
Stock image of London skyline city. (Jonathan Brady / PA)

Royal London has received approval to transfer more than 1 billion pounds sterling (1.14 billion euros) in assets to Ireland while the fund manager increases its Brexit contingency planning.

The insurance and investment group, which has 114 billion pounds (€ 130 billion) in total funds under management, has received approval from the UK Supreme Court for the measure, which involves more than 500,000 policies.

It is designed to deal with the consequences of a difficult-to-deal Brexit in which Britain's financial services sector would lose the passport rights that enable them to function in the EU's single market, the richest trading bloc in the world.

In approving the move to Dublin, Judge Snowden said at his trial: "In common with many other financial institutions, Royal London is concerned that in the case of a" no-commitment "Brexit will lose the" passport " to entrust it with its authorization in the United Kingdom to carry out regulated activities to assist its policyholders in other member states of the European Economic Area.

"To address this possibility, Royal London wishes to transfer its long-term business with policyholders in the EEA to RLI, which is authorized and regulated in the Republic of Ireland, and thus able to service the policies in question after Brexit, irrespective of way it can take. "

Slightly more than £ 1 billion (€ 1.14 billion) of gross value is being transferred, but as the business is being reinsured, the net transfer of assets is £ 10.5 million (€ 12 million).

Royal London informed its policyholders that even if an agreement between Britain and the EU were reached, allowing it to continue administering UK policies after Brexit, it is now "committed to the transfer".

The new arm of Royal London in Ireland has been capitalized with 40 million euros from the parent company and the extraordinary costs of the transfer are estimated at 21 million pounds (24 million euros).

Several banks – including Baclays, Royal Bank of Scotland, Lloyds, Goldman Sachs, Morgan Stanley and a number of others – have set up continental centers in preparation for Britain's exit from the EU.

This involves hundreds of jobs and hundreds of billions of assets transferred from London, hitting Treasury tax revenue and undermining the capital's reputation as a financial center.

Frankfurt, the financial capital of Germany, is one of Brexit's biggest beneficiaries. For its part, Royal London is creating 20 new jobs in Dublin.

Press Association

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