Arch Insurance, part of Bermuda-based Arch Capital, has received approval from the High Court of Justice of England and Wales to transfer to Arch Insurance (EU) dac the insurance business carried on by Arch Insurance (UK) (excluding inwards reinsurance business) in any state within the European Economic Area.
The move is necessary because of Brexit and will ensure continuity of coverage for policyholders utilising Arch Insurance (EU) dac’s freedom of establishment and/or freedom of services.
Womble Bond Dickinson (UK) were advisors on the Part VII transfer from Arch Insurance (UK) to Arch Insurance (EU) dac in Ireland. This will take effect on 31 December 2020, following the receipt of sanction from the High Court on 18 December 2020.
The transfer required the approvals of the Prudential Regulation Authority, the Financial Conduct Authority, the Central Bank of Ireland and each regulator in the EEA, and involved over 76,000 notifications to policyholders and affected parties.
The announcement follows the decision of the UK electorate to vote in favour of leaving the European Union (the EU). In response, Arch Capital Group put in place a plan to restructure its UK and European operations in order to continue to service its European policyholders after the UK’s withdrawal from the EU and the expiration of the agreed transition period, which is due to take place on 31 December 2020.
Arch Insurance, Arch Capital, Bermuda, Part VII, Business transfer, Insurance, Reinsurance, Brexit, Womble Bond Dickinson, UK, European Union.