XL Group is moving its main European Union insurance operation from London to Dublin in response to Britain’s impending departure from the European Union.

The Bermudian-based insurer and reinsurer made the announcement today after a meeting between Mike McGavick, XL’s chief executive, and Leo Varadkar, Ireland’s Taoiseach, or prime minister.

XL already runs its European reinsurance business from Dublin and will relocate XL Insurance Company SE from the UK to the Irish capital next year. It employs about 45 people in Dublin and intends to build that up to 70 by the end of 2018.

Although the terms of Brexit are still under negotiation, “passporting” rights, which allow UK-based businesses to service clients across the bloc, may well be lost.

Many banks and insurers are also moving their European hubs into other EU countries to avoid potential disruption.

Mr McGavick said: “Since the referendum announcement we have been clear that our top priority is to provide certainty and consistency of service to our clients and brokers. Moving XL Insurance Company SE to Ireland means we deliver on that commitment.

“My meeting today with An Taoiseach Leo Varadkar has only served to further enhance our relationship and our commitment to Ireland. Dublin is a natural home for us in Europe.

“We have a long and established presence in Ireland and we understand and respect the high quality business environment, the regulatory environment and the talent of the people here.”

XL Group has had insurance operations in Dublin since 1990, when it opened its first European insurance company in the then brand new International Financial Services Centre. Today XL maintains reinsurance operations and corporate functions at No 8 St Stephen’s Green, Dublin.

Dublin was also the domicile for XL Group’s parent company between 2010 and 2016 before its new holding company, XL Group Ltd, was formed in Bermuda after XL acquired Catlin Group Ltd.

In the UK, XL will retain Catlin Insurance Company Ltd as well as its Lloyd’s operations, Syndicate 2003 and 3002.