XL Catlin's London-based insurance operations have introduced a contract continuity clause as part of its Brexit contingency plans.
The clause, which will be included in insurance policies written by XL Catlin London-based entities Catlin Insurance Co. (UK) Ltd. and Lloyd's of London Syndicate 2003, is intended to address the risk that contracts written by them prior to Brexit may become impermissible assuming loss of so-called passporting rights, which enable financial firms to offer services across the EU.
The company noted that the clause mirrors standard London market continuity clauses, but with some key differences.
The move comes after the European Union and the U.K. agreed March 19 on a draft 21-month transition deal to phase in the U.K.'s exit from the bloc.
XL Catlin also said that it is proceeding with its Brexit plans to relocate XL Insurance Co. SE — the main insurance company platform for XL Group Ltd. within Europe and Asia — to Dublin and that the recently announced $15.3 billion acquisition of XL Group by French insurer Axa does not impact these plans. As a result of XL Insurance Co.'s relocation, its policies do not need to rely on the contract continuity clause.
XL Catlin is the global brand used by XL Group's insurance and reinsurance companies.