INSURANCE BROKING giant Willis Group Holdings, whose Irish unit was formerly known as Coyle Hamilton, is moving its legal place of incorporation to Ireland from Bermuda for tax and other reasons.
The development comes amid a campaign by US president Barack Obama to clamp down on tax havens, an effort in which his administration has cited Ireland as one of three jurisdictions accounting for a major portion of foreign profits made by US corporations.
In spite of that, Ireland is emerging as beneficiary of the campaign thanks to its comparatively low 12½ per cent corporate tax rate and the relative transparency of the system here vis-à-vis tax havens in locations such as Bermuda and the Cayman Islands.
“We reviewed a number of alternatives with our board of directors, and believe that incorporating in Ireland will provide Willis with economic benefits and help ensure our continued global competitiveness,” said Joseph Plumeri, chairman and chief executive of the group, which is listed in New York.
Willis said the move to Ireland improved its ability “to maintain a competitive worldwide effective corporate tax rate”, as well as providing a more stable environment with the financial and legal infrastructure to meet its needs. “Most importantly, Willis has had ongoing operations serving a wide range of clients in Ireland since 1903, and currently is the largest insurance broker in Ireland.”
Willis Ireland employs more than 300 staff at offices in Dublin, Limerick and Cork. The company is engaged in insurance and reinsurance broking, pensions, and actuarial and risk-management consultancy.
Its parent, which is the world’s third-largest insurance broker, has 300 offices in 80 countries.
The group is the fifth large international organisation to relocate its legal headquarters to Ireland since Mr Obama declared his intention last May to increase taxation in the US of profits made abroad by US corporations.
The other companies were: consulting business Accenture; manufacturing specialist Ingersoll Rand; electrical products manufacturer Cooper Industries; and healthcare firm Covidien, an offshoot of Tyco International.
Referring to Ireland’s EU membership, Willis said the State offers a long history of international investment and long-established commercial relationships. It also said Ireland offered trade agreements and tax treaties with other EU states, the US and other countries around the world where it does business.
Several British companies have also relocated their corporate headquarters to Ireland.
