Aviva to move £9bn in assets to Dublin as Brexit looms

Pedro Gonçalves
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Aviva to move £9bn in assets to Dublin as Brexit looms

Aviva, the UK's second largest insurer, has announced it will move around £9bn worth of assets to Ireland in preparation for a no deal Brexit, The Independent has reported.

the provider received approval from the High Court to transfer life policies worth €9bn (£7.8bn) to Dublin, which is to occur by March 29, before the UK officially exits the EU.

This follows the transfer of general insurance policies on February 1, worth £1bn.

The evidence of [the transferor] is that the uncertainty over the Brexit negotiations means that if it delayed further and did nothing, there is a real risk that substantial numbers of policyholders would be materially prejudiced in event of a ‘hard' [‘no-deal'] Brexit by the loss of [the transferor's] EU passporting rights"

"The evidence of [the transferor] is that the uncertainty over the Brexit negotiations means that if it delayed further and did nothing, there is a real risk that substantial numbers of policyholders would be materially prejudiced in event of a ‘hard' [‘no-deal'] Brexit by the loss of [the transferor's] EU passporting rights," said Justice Snowden, who approved the transfer.

He added that a hard Brexit would mean Aviva could not service policies through its overseas branches or pay policyholders' claims in the EU.

A statement from Aviva said: "We are transferring some of our customers' policies in the EEA to our Irish subsidiary, Aviva Life & Pensions Ireland dac, to ensure that when the UK leaves the EU we can continue to service these policies. For customers who are being transferred there will be no changes to the terms and conditions, cover or customer support of their policies."

The transfer is timed for 22.59 GMT on March 29. Brexit formally takes effect at 23.00pm that night. It is part of a wider withdrawal of business and money by financial companies seeking to keep contracts and policies within the EU after Britain departs.

Banks and insurers are shifting hundreds of billions in assets and reversing decades of European financial market integration and chipping away at London's premium position as a financial centre.