Beazley moves its tax base back to Britain from Ireland
Insurance firm has been domiciled in Ireland since 2009
The insurance group Beazley has said it will move its headquarters back to London more than six years after shifting to Dublin for tax reasons.
The FTSE 250 firm will ask shareholders to vote on the move back to the UK in March. Beazley chief executive Andrew Horton, who suggested two years ago that the firm could relocate, said he was “delighted that we have completed the preparations to return our head office to London”.
The Lloyd’s of London insurer was part of a swathe of companies to quit the UK in response to tax breaks in Ireland, where corporation tax is just 12.5pc. The advertising giant WPP moved its domicile in 2008 but reversed the decision four years later as the Government reduced the tax rate for businesses.
Drugs maker Shire, insurer Hiscox and building materials supplier Wolseley, based in Ireland, Bermuda and Switzerland respectively, are among the FTSE companies that remain offshore for tax purposes.
Beazley had an effective tax rate of 12.3pc last year. The UK Government has pledged to reduce corporation tax to 18pc of profits by 2020.
The property and marine insurance specialist also reported profits rose 8pc to $284m last year, with lower claims making up for a drop in net written premiums as prices fell across the market.
It added that despite the tough climate for insurers, with a dearth of big catastrophe claims attracting an influx of capital and competition into the sector, Beazley was not looking to take part in the takeover activity that has already swallowed rivals Amlin, Catlin and Brit.
“We see much of this consolidation as defensive in nature, reflecting the challenge of achieving growth,” said chairman Dennis Holt. “Beazley is of course not immune to these challenges, but has demonstrated an ability to achieve acceptable growth with strong profitability in current market conditions. As such, we remain confident in the continuing viability of our business model.”
The firm noted that data breach and cyber insurance was the largest single line of business in its portfolio. Beazley sells the majority of its policies in the US, but said Singapore and parts of Europe were avenues of growth for 2016.
Profits were also given a lift by the release of $176.3m that was set aside in previous years to cover expected claims that did not occur. This reserve release was 12pc higher than a year ago.
