Beazley stumbles on proposed move to UK shores

Beazley shares fell on the news that the board was recommending re-locating the management of the group to the UK from Ireland.

The FTSE 250 insurer and Lloyd's of London underwriter, which is incorporated in Jersey with its tax residence in Ireland, said it believed legislative changes have now made the UK "the optimal location" for its base.

This would "simplify the management and decision making" and allow shareholders access to a UK dividend steam

Following legislative changes in the Finance Act 2012 relating to controlled foreign companies, Beazley expects no material change to its reported tax rate, or taxation paid if it moves headquarters.

Under the scheme of arrangement, all existing shares will be cancelled and replaced on a one-for-one basis with new shares.

The scheme will require approval of shareholders in Jersey and a separate vote at the company’s annual general meeting on March 24 in Dublin.

Shares in Beazley were down 6% to 351.65p not long before 1000 GMT on Thursday.