Arch Insurance (UK) Limited has received approval for a Part VII transfer of insurance business conducted in any state within the European Economic Area (EEA).
By transferring business carried out by Arch Insurance (UK), excluding inwards reinsurance business, to Arch Insurance EU in Ireland, the company hopes to ensure continuity of coverage for policyholders after Brexit.
The expiration of the agreed Brexit transition period is due to take place on December 31st, 2020, after which the UK will leave the European Union (EU).
With Brexit negotiations still at a standstill, it is possible that the UK could be forced to leave on no-deal terms, which analysts believe would have negative impacts for re/insurers operating across borders.
Arch’s Part VII 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.
It will take effect on December 31st, 2020 – the same date as the Brexit transition deadline – having also now received sanction from the High Court on of Justice of England and Wales 18 December 2020.
Womble Bond Dickinson (UK) LLP were advisors on the Part VII transfer from Arch Insurance (UK) Limited to Arch Insurance (EU) dac in Ireland.