XL Group is to move its registered office from Ireland to Bermuda, to better suit its global operations.

CEO Mike McGavick says it is a natural step for the company.

“XL has had a presence in Bermuda since 1986, which grew significantly following the transaction with Bermuda-based Catlin last year,” he said.

“A significant portion of XL’s business has, for decades, been located in Bermuda and regulated by the Bermuda Monetary Authority.”

Mr McGavick says the recent determination of full Solvency II equivalence for Bermuda makes it more suitable for XL. “It has been concluded the authority is best situated to serve as XL’s group-wide supervisor and to approve our internal capital model.”

The insurer expects to submit a proposal to shareholders in the next few months and complete the move in the third quarter of the calendar year.

The proposal will require regulatory approval and agreement from the High Court of Ireland.

Shares will continue to trade on the New York Stock Exchange.