Arch Capital Group has revealed that it plans to expand its underwriting operations in Ireland to ensure continuity following the UK’s scheduled departure from the European Union (EU) in March 2019.
The group has applied for regulatory approval from the Central Bank of Ireland to allow its UK insurer, Arch Insurance Company (Europe), and its Gibraltar insurer, Alwyn Insurance Company, to continue certain underwriting operations from Ireland.
Acquiring approval for these operations will allow Arch to maintain continuity of cover for its existing policyholders, retain access to the UK and EU markets, minimise disruption for the group’s EU operations, and build on an established regulatory supervisory relationship.
Arch already has considerable experience in the Irish market, having established reinsurance operations there in 2008 and insurance operations in 2012.
Plans to extend the group’s existing licenses in Dublin are already underway, alongside requests for supplemental licenses to match those used in the current UK and Gibraltar operations, which are expected to be approved and in place before Brexit.
Maamoun Rajeh, Chairman and Chief Executive Officer (CEO) of Arch Worldwide Reinsurance Group, said: “Arch has had an established presence in Ireland for the last decade so Arch’s existing platform in Ireland was the natural choice for Arch from which to ensure continuity of the EU business currently written by its UK and Gibraltar insurance operations, including in particular its motor insurance business.
“We look forward to continuing our strong relationships with our partners and regulators in Ireland, the UK and Gibraltar, and continuing to serve our policyholders throughout the EU and the UK.”
Matt Shulman, President and CEO of Arch Insurance Europe in London, added: “This decision provides opportunity for Arch Insurance Europe to strengthen our capabilities in Europe, alongside a continued presence in London through our existing UK operations.
“We see strong economic fundamentals in the trading block with growth expected in manufacturing, oil and gas and financial services in the next five years, and we know Arch can add significant value in that space.”
Arch will continue its involvement in the Lloyd’s Market through Syndicate 2012, which will service its Lloyd’s clients through the establishment of Lloyd’s Insurance Company in Brussels.
