Brexit drives two more US insurers to Dublin

Travelers and Manulife Investment Managers announce moves to Dublin

By the end of June, 29 financial services companies had relocated staff or services from London to Dublin as a result of Brexit, EY said. Photograph: iStock

By the end of June, 29 financial services companies had relocated staff or services from London to Dublin as a result of Brexit, EY said. Photograph: iStock

 

Travelers Insurance Company, the US multinational with total assets of about $103 billion, will transfer its European business to Dublin in a move to protect its services following Brexit.

Having received approval from the British high court in addition to the Central Bank, Travelers said all policies and historic liabilities written out of its Irish, French, German and Dutch branches would be folded into a new Dublin-based entity, Travelers Insurance Dac, which received Central Bank approval in January.

Receipt of British court approval was “another milestone” in the company’s plan to ensure it maintains “high levels of service” for its customers following the UK’s expected departure from the European Union, said Matthew Wilson, chief executive of Travelers Europe.

“We are delighted to be able to provide certainty to our policyholders, no matter which part of our business they work with,” he added.

Risk mitigation

Separately on Monday, Canadian financial institution Manulife said its investment management arm had established an office in Dublin to support the company’s clients in the Americas, Europe, the Middle East, Africa and Asia, “as well as provide risk mitigation for uncertainties caused by Brexit”.

“Growing our European presence to meet the potential of the market continues to be a priority,” said Andrew Arnott, head of Manulife Investment Management in the US and Europe.

By the end of June, 29 financial services companies had relocated staff or services from London to Dublin as a result of Brexit, EY said earlier this month. And while EY said the pace of relocations had dipped significantly, the move by Manulife and Travelers will be seen as a positive in the State’s drive to attract business away from the UK as uncertainty over the shape of any Brexit continues.

Among the major investments announced for Dublin since the UK’s vote in 2016 was Barclays, which has injected up to €2.6 billion of capital into Barclays Bank Ireland over the course of 2018 and the first few months of this year.

Bank of America has also invested millions of euro in Brexit preparations, adding 300 new jobs between Dublin and Paris, and JP Morgan has moved “several dozen” staff from London since June 2016, applying for new licences in Dublin and Luxembourg.