Brexit: Legal & General announces plans to shift operations from UK to Dublin

FTSE 100-listed L&G said it will move part of its investment management business to Ireland to ensure it maintains unfettered access to the single market

he Irish capital has been campaigning vocally to attract financial services companies based in the UK who are concerned about Brexit (Reuters)

Insurers Legal & General and Aviva have announced plans to move some operations to Dublin because of Brexit.

The Irish capital has been campaigning vocally to attract financial services companies based in the UK who are concerned about their ability to trade across Europe after the planned split.

FTSE 100-listed L&G said it will move part of its investment management business to Ireland to ensure it maintains unfettered access to the single market. The move will not impact staff in other locations, L&G said in a statement on Friday.

“The decision is part of LGIM's strategy to ensure it can continue to serve its customers, both in Ireland and across the European Union, after the UK leaves the bloc,” L&G said.

L&G Investment Management is one of Europe's largest investors, with just under £900bn of assets under management.

Rival Aviva said on Friday it would turn its Irish life and general insurance branches into subsidiaries, Reuters reported.

The two companies are the latest to announce Brexit-related moves. Rival asset manager M&G, which is owned by Prudential, recently unveiled plans to set up a fund management company in Luxembourg, while Legg Mason said it would create a management company in Dublin.

Last week, fellow insurer and asset manager Standard Life said it was also likely to choose Dublin as the base for its EU subsidiary after Brexit.

JPMorgan, which currently employs around 500 people in the city, said earlier this month that it had agreed to buy a building there with room for 1,000 staff.

Ireland’s jobs minister Mary Mitchell O'Connor said: ”The decision by Legal & General to establish this operation in Dublin is very welcome news and illustrates the strength of Ireland's position in attracting significant companies in the financial services sector.”

Martin Shanahan, the head of IDA Ireland, the government body tasked with attracting foreign investment, also hailed the decision, saying: “This is yet another very important signal to the market that financial services companies can come to Ireland quickly and service their European customers, with minimum disruption to their business.”