Not to be an apologist for the insurance industry, but moving your HQ is hardly news and makes sense for an industry that truly relies on an international pool of capital and insures a global array of risks. Bermuda and caymans have long been home to vibrant insurance communities, and Switzerland is becoming one (see: ACE). Berkley has long been an old crank in the business (all respect intended).
But why do corporations get off the hook when they move abroad while the IRS tracks down individuals abroad, and requires them to pay all their taxes?
Re: News?
Dex
5/3/2012 2:58:01 PM
Fair question @Cat Tail. I'd like to skate on my taxes by moving to Bermuda, too,
http://mobile.bloomberg.com/news/2012-04-09/evan-greenberg-says-regulators-leading-an-unrelenting-assault-
Aon is the world's biggest broker, which is why the issue was worth a fresh look at this time. Also because there's a bill in Congress - sponsored by a Mass. Congressman who's close to Berkley, to flog the overseas crowd. Berkley may be an "old crank" but he still has a lot of influence!
Perhaps the question should be why international pools of capital AVOID the U.S. when it's still the major insurance market in the world ...
Check out Evan Greenberg (CEO of Swiss-based Ace Insurance) comments on Solvency II, which sets capital-based requirements for EU-based companies. Hey, as Joe E. Brown said about Jack Lemmon in "Some Like It Hot," nobody's perfect.
Do you have a link for those comments, Ed?
Seems strange that Aon is relocating to London while Prudential is considering moving out.
Prudential's boss attacked proposed new EU capital rules on Tuesday, saying they risk destroying the insurer's American business and driving its headquarters out of the UK.
The insurer, which generates nearly half of its sales in Asia, reiterated that it would consider moving its headquarters abroad depending on the outcome of the new rules being debated in Brussels, known as Solvency II, which are due to come into force in 2014. Hong Kong is seen as the most likely destination.
Re: Why London?
Tenacious
5/3/2012 3:25:49 PM
Well it does make you wonder. Since when did the UK become a tax haven? Why wouldn't Aon go to the Caymens or maybe the British Virgin Islands?
Good question Tenacious. Ed, any thoughts?
Isn't the reason that the AIG unit specializing in mortgage derivatives was based in London cause it was off the radar of US regulators? That ended up working out not so well.
Wake up call?
tokyogai
5/4/2012 7:30:27 AM
Maybe our members of congress should look at this. It really is time for some serious tax reform. When the UK is a better place to do business than Chicago, you know you need to make a change.
The US tax code never ceases to bewilder me. I can't understand why "A" is OK but "B" is not.
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