Denis Naughten (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

226. To ask the Minister for Finance if he is concerned by the planned departure of an organisation (details supplied) from Ireland; if he has had any discussions with the Central Bank of Ireland in order to understand the reasons for the organisation’s decision to leave Ireland; if he has independently ascertained the extent to which regulatory demands drove that decision; and if he will make a statement on the matter. [58750/22]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

From the details supplied, I understand that the Deputy is referring to Zurich Insurance. It was reported that Zurich Insurance group plans to shift its European Economic Area (EEA) insurance company, Zurich Insurance plc (ZIP), to Germany from Ireland following Britain's departure from the European Union. This move, I understand, will not happen before 2024.

It was also announced that Zurich's domestic Irish insurance business, which employs 1,100 people, would not be affected.

As the Deputy will be aware, the Central Bank of Ireland, as an independent regulator, does not discuss specific firm-related issues with external parties, including the Department of Finance. Nonetheless, I note reports that the decision made by Zurich is a commercial one, which the company has made due to Brexit. With ZIP’s UK entity leaving the ZIP EEA structure from next year (when temporary UK provisions following Brexit expire), Germany will be ZIP’s single largest EEA market. Accordingly, the company is taking this as an opportunity to simplify its business structure. Unfortunately, while this move will affect 110 employees, I am aware that they will be offered opportunities within the Group.

While this decision by Zurich is disappointing, I welcome confirmation that Zurich group remains committed to the Irish market with plans to continue to grow and invest in here, and that domestic policyholders will be unaffected by this announcement. In addition, it has stated it remains committed to the 1,100 employees that support its operations here in Ireland.

The Government remains committed to promoting Ireland as a financial services hub under the updated Ireland for Finance strategy, which was launched in October. Its vision is for Ireland to continue to be a premier location of choice for specialist international financial services.

Direct employment in the sector is at its highest levels with over 52,000 people working in a diverse array of firms in insurance, banking and investment management, as well as the many thousands working in the provision of highly skilled services that support the sector in legal, audit and accounting firms.