High Court approves merger of XL Europe into XL Insurance Company
The High Court in London has approved the merger of Dublin-based XL Europe into XL Insurance Company.
The order follows the approval of the business portfolio transfer from XL Europe to XL Insurance Company the Irish High Court in Dublin on 4 December 2008.
The portfolio transfer and merger are due to take effect from 31 December 2008 and form the culmination of a year-long project to restructure and streamline XL Insurance's operations into a single platform to serve the countries of the European Economic Area as well as Asia and Australia.
XL London Market's Lloyd's based business is unaffected by this change.
David Duclos, chief executive of XL Insurance, said: "The Court approval for the merger of XL Insurance Company Ltd and XL Europe Ltd represents the final step in this long-term project. This cross-border merger of insurance companies is the first of its kind in the UK and Ireland, following the recent implementation of the European Union's Merger Directive. It involved close co-ordination between our underwriters, compliance, legal and finance experts while keeping our clients and brokers informed. The project started in 2007 and follows the successful restructuring of XL's reinsurance segment in Europe two years ago.
"We believe that a single, streamlined European and Australasian insurance platform will be better placed to serve our business requirements and the needs of clients and their brokers. We expect the simplified structure to improve capital efficiency and put us in a strong position for Solvency II."
XL Insurance Company is registered in London and regulated by the FSA. The merged company has capital and surplus of just under $1 billion.
