As a result of Brexit and a subsequent desire to remain within the European Union (EU) single market, global insurance and reinsurance broker, Aon, has filed a preliminary proxy statement to move the jurisdiction of incorporation for the firm’s parent company from the UK to Ireland.
According to Aon, “Remaining within the European Union single market will help the firm maintain a stable corporate structure and capital flexibility.”
Widespread uncertainty surrounding exactly when, how, and under what terms the UK leaves the EU remains, and as such, more and more companies within the UK’s very important financial services sector have either set up branches in remaining EU domiciles, or redomesticated out of the UK into an EU jurisdiction, in order to ensure continuity for clients post-Brexit.
According to an announcement on the re/insurance broker’s website, Aon is looking to join the list of those companies that have decided to move the jurisdiction of the incorporation for its parent company from the UK, and has selected Ireland as its new home within the EU.
It’s expected that the move will drive ongoing shareholder value creation through effective capital management that maximises returns on invested capital. Aon notes that moving the jurisdiction will not lead to any material change in the firm’s current business operations, reporting requirements or listings.
The transaction, which is expected to close in the first-quarter of 2020, requires shareholder approval and if and when this is received, Aon is then required to make a subsequent application to the High Court of Justice of England and Wales to seek approval.
Following the move, Aon’s operating company headquarters will still be at the Leadenhall Building in London, and the broker states that its commitment to both the UK and the London insurance and reinsurance market remains “unchanged and unrivalled.”
It’s expected that the shares of the new Irish company will be listed on the NYSE, and Aon will continue to report earnings and other financial statements in accordance with Securities and Exchange Commission (SEC) regulations.