Specialty insurance and reinsurance group Lancashire Holdings has announced that its Group supervisory and tax domiciles are to be re-established in Bermuda with effect from 1 January 2019.
In 2012, the company decided to establish its head office and conduct the majority of its Board business in the UK, prior to which it was based in Bermuda.
Lancashire explained in its annual report that it undertook detailed discussions during 2018 to identify the most suitable insurance supervisory and tax domicile for its business, before settling on a return to Bermuda.
On balance, Lancashire’s Board felt that the transition would assist in ensuring a continuing strategic focus on the growth and development opportunities in the U.S. specialty and catastrophe markets.
The assessment process involved engaging with the UK’s Prudential Regulation Authority (PRA) and HMRC, as well as the Bermuda Monetary Authority (BMA).
The Group explained that the decision would not affect the regulation of the Group’s UK insurance entities, which will continue to be regulated by the PRA and the Financial Conduct Authority (FCA), and in the case of CUL and Syndicates 2010 and 3010, Lloyd’s.
Lancashire added that it has considered and will continue to review potential adjustments to its investment strategy in light of the decision to move its regulatory supervision and tax residence from the UK to Bermuda.
The announcement follows Bermuda’s recent addition to the EU’s ‘blacklist’ of countries that have failed to comply good governance standards on tax, which the country is currently seeking removal from.