United America Indemnity has announced that its Board of Directors has unanimously approved a plan to re-domicile from the Cayman Islands to Ireland. The Company’s shareholders will be asked to vote in favor of completing the reorganization proposal at a special meeting.
“If the proposal is accepted, the Company will become a wholly-owned subsidiary of Global Indemnity plc, an Irish company,” said the bulletin. United America’s operating companies include: Penn-America, which specializes in property and general liability products distibuted through independent agents, United National, which offers property, general liability, and professional lines products distributed through program administrators and Diamond State, which offers the same types of products through wholesale brokers.
The group also includes Wind River Reinsurance Company, Ltd., a Bermuda based treaty and facultative reinsurer of excess and surplus lines and specialty property and casualty insurance.
The announcement of the decision explained that, its previously announced intention to re-domicile in Switzerland had been reconsidered. It added that the Company “has now determined that incorporating in Ireland is in the best interests of both the Company and its shareholders.
“The Company believes that Ireland offers an 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.”
The Irish economy has been especially hard hit by the economic crisis, but the insurance has managed to cope very well with the economic problems, as the country continues to attract companies, for the reasons given above. Willis announced in September that it would reincorporate in Ireland, and many other global insurers have operational headquarters there for Europe.
United America gave the following details concerning the move: “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.
“Global Indemnity will be subject to U.S. Securities and Exchange Commission reporting requirements, the mandates of the U.S. Sarbanes-Oxley Act and the corporate governance rules of NASDAQ. Global Indemnity will report its consolidated financial results in U.S. dollars and under U.S. generally accepted accounting principles.
“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.
Source: United America Indemnity – www.uai.ky
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