Flagstone Re completes relocation
Flagstone Re has completed its redomiciliation from Bermuda to Luxembourg after the plan was approved by shareholders.
The move, which applies to the place of incorporation of Flagstone’s holding company, would deliver a significant advantage, said chief executive officer David Brown.
“This move will increase our strategic and capital flexibility while maintaining our operating model and our long-term strategy,” Brown said. The company’s investment management operations were already located in Luxembourg.
Flagstone Re is not the first reinsurer to make such a move, as ACE (Switzerland), Amlin (Switzerland) and XL (Ireland) have also relocated to continental Europe, looking for an efficient tax domicile with proximity to key markets.
David Stephenson, a director in the insurance team of Fitch, said: “I think it is becoming a bit of a trend, and if there was a mass movement from Bermuda to Europe, it would add to the competitive element and, in the long term, it would have a negative impact on pricing. “However, it would require a large-scale migration, and I don’t think we are at that stage,” he added.
Philippe Regazzoni, who was set to become chief executive officer of Amlin AG’s Zurich underwriting unit, said: “We are excited by the prospect of building a third significant reinsurance business within the Amlin group, and helping to reinforce Amlin’s position and brand as a leading international reinsurer.
“We believe that a focused and well-capitalised European reinsurer will provide a strong partner for European brokers and clients,” he added.
With several industry heads making the move, reinsurance firms in Bermuda might be witnessing the start of something revolutionary.
