Monday, March 1, 2010
Insurance firm, United America Indemnity has announced its intention to re-domicile from the Cayman Islands to Ireland. The firm's shareholders will be asked to vote in favour of completing the reorganization proposal at a forthcoming shareholders meeting. If the proposal is accepted, the Company will become a wholly owned subsidiary of Global Indemnity plc, an Irish company.
The company previously announced that it is reconsidering its original plan to re-domicile to Switzerland and has now determined that incorporating in Ireland is in the best interests of both the company and its shareholders. In a statement, UAI underscored that its decision was motivated by Ireland’s “attractive business environment, a highly educated and motivated professional workforce, a comprehensible legal system grounded in common law, a sophisticated regulatory environment, and an extensive global network of international treaties.”
If the move to Ireland is approved by shareholders, the Company's Class A common shares will be exchanged for Global Indemnity's Class A ordinary shares on a 2 for 1 basis (2 UAI shares for 1 Global Indemnity share), which will trade on the NASDAQ Global Select Market under the ticker symbol GBLI. In addition to shareholder approval, the move to Ireland is subject to an order from the Grand Court of the Cayman Islands sanctioning the transaction.
In recent months several insurance firms have re-domiciled to Ireland to take advantage of its low taxes, membership of the European Union and its network of double tax agreements. Another reason why insurers domiciled in offshore jurisdictions have shifted, or are considering shifting their HQs, is legislation currently sitting in the US Congress which seeks to curb tax advantages for reinsurance operations based offshore.