Insurer RSA has scrapped plans to change its status from a separately capitalised and regulated subsidiary in Ireland to a branch operation of its UK-based parent company in the aftermath of the decision to leave the European Union.
According to a report by
The Irish Times, RSA was originally scheduled to stand in front of the High Court on July 5 this year in an effort to transfer the activities of RSA Insurance Ireland to Royal & Sun Alliance in the UK. While there would not have been an impact on staff or customers, there would have been a legal transfer of policyholders across the UK business with RSA planning to write to policyholders ahead of the change. In addition, the Irish firm would have moved from a subsidiary to a branch, based on EU rules of passporting into Ireland from the UK.
Furthermore, as part of the originally planned terms, RSA would not have had separate capitalisation in Ireland and it would not have been required to have its own board of directors. It would have been regulated by the Central Bank of Ireland but its prudential regulation would have moved across to the UK.
However, the Brexit result has changed these plans – and now the status of RSA looks to remain unchanged.
The decision comes after London-based RSA made €90 million (C$154 million) available to its Irish business in an effort to boost its balance sheet under Solvency II, back in March.
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