Insurer joins growing number of companies seeking more favourable jurisdictions.
RSA has become the latest insurer to consider redomiciling because of the UK’s corporate tax regime.
Speculation has been mounting over a possible move to Dublin for the insurer in light of Ireland’s lower corporation tax rates – 12.5% compared to 28% in the UK.
An RSA spokesman said: “We periodically review our domicile. We did this a few years go and decided at the time that the UK was right for us. We’re reviewing it again, but have made no decisions.”
Reports suggest the insurer could save £50m, or 10% of its profits if it decided to redomicile to the Republic of Ireland.
Frustration among UK-based insurers has been growing in recent months with Brit also mooting a move overseas.
Brit chief executive Dane Douetil said he wanted to remain in the UK but only if there was greater certainty about the tax position.
Earlier this year, Amlin said it was considering redomiciling to more favourable tax jurisdictions such as Switzerland, Ireland or Bermuda.
The ABI warned in June that the Treasury’s current system of taxing foreign profits would compromise the competitiveness of the UK economy.
As well as high taxes on foreign profits, the ABI has long called on the government to lower corporation tax.
Lloyd’s chairman Lord Levene warned earlier this month of the government’s current tax regime, claiming that while Lloyd’s was still performing well, it was under threat from other markets where tax rates were more attractive.
He said: “I am a great believer in competition. But competition means that you must compete, and there are currently two groups of the great and the good studying ways to ensure that the UK’s biggest industry, financial services, remains competitive.”
He added: “But it doesn’t need the output of these very distinguished people to restate the obvious. The tax treatment of Lloyd’s in the UK must be amended for us to stay on top.”
