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Royal London ‘watching’ post-Brexit impact on Irish insurance unit – The Irish Times

The Irish unit of British insurance group Royal London is “monitoring” any discrepancies between EU and UK industry regulations in the wake of Brexit that could impact its business model here.

The company said it was monitoring any changes in the way the two blocs handle the insurance industry, as the so-called regulatory divergence “could lead to the loss of some element of efficiency” in its model of functioning, according to the accounts of the Royal London Insurance DAC for 2021. filed with the Companies Registration Office in Dublin.

Royal London established the subsidiary in Ireland in 2018 to continue serving the market here after the UK voted to leave the European Union. The possible regulatory divergence between the two regions since the Brexit vote has long been a concern for businesses, with many companies setting up entities in Ireland to retain access to EU markets.

“Several services are subcontracted to our parent company to benefit from the economies of scale of the Royal London group”, specify the leaders of the company in the accounts. “Should such a discrepancy occur, requiring changes to the operating model, it could cause logistical challenges and increase operating costs,” they added.

As a result, Royal London has “strengthened its control framework” which now involves “systematic monitoring” of any discrepancies in the rules, they added.

A spokesperson for Royal London declined to comment on the accounts.

The Brexit trade deal implemented last year appeared to allay immediate concerns about the impact of potential regulatory changes. Yet British Foreign Secretary Liz Truss – who is the favorite to become the next leader of the Conservative Party and take over as Prime Minister next month – has pledged to roll back parts of the deal already in progress. square. The EU has already started legal action against the UK over the proposed changes, and the dispute threatens to undermine the wider trade deal.

The potential Brexit issues came as the Irish firm saw its profits rise 40% in 2021 from a year earlier to €8.3m. This brought the cumulative profits to 131.5 million euros. Gross written premiums increased by 11% to reach 98.9 million euros.

Overall personnel costs amounted to €1.2 million over the year. The company directly employed five people in 2021.