AIG have chosen to relocate its European headquarters to Luxembourg from London in the wake of Brexit, according to reports.
The development will come as a blow as it is understood that Dublin was in the running as a base for the global insurance giant.
The AIG workforce in Ireland is currently around 400, in roles such as IT, treasury and asset management.
“Establishing a new company in Luxembourg will result in some changes at a Europe senior leadership level but wider impacts are expected to be minimal. There will of course be some positions to fill in our Luxembourg operation but this will be a gradual process over the next two years,” a spokesperson said, according to the Financial Times.
AIG's chief financial officer, Sid Sankaran, the chief executive of its consumer division, Kevin Hogan, and Declan O'Rourke, the head of AIG's operations in Ireland, met with Finance Minister Michael Noonan last December to discuss a possible move to Dublin.
Mr Sankaran and Mr Hogan are both board members of AIG.
Insurance Ireland has called for a review and redoubling of efforts by the Irish Government to secure investment opportunities arising from the UK’s decision to leave the European Union.
Kevin Thompson, CEO of Insurance Ireland, stated “Ireland has developed into an international hub for insurance with an availability of talent, a well-developed support ecosystem and Single Market access, among many other strengths.
"These strengths must be maximised to avail of any ‘Brexit dividend’ but equally, any deficiencies must also be considered and addressed. It is vital that a review is undertaken of the current interactions of the state and its agencies with prospective international insurance investors. This review should be conducted immediately to enable the industry and state agencies to capitalise on any opportunities that exist from insurance companies seeking to establish an international insurance presence in Ireland.”
More to follow...