XL Capital wants to change place of incorporation to Ireland from Cayman Islands

XL Capital plans move to Ireland from Caribbean

NEW YORK — International insurer XL Capital Ltd. said Tuesday that it wants to change its place of incorporation to Ireland from the Cayman Islands.

XL said its name will change to XL Group PLC from XL Capital Ltd. as part of the redomestication, with shareholders receiving one ordinary share of the Irish company for each share they currently own.

CEO Michael S. McGavick said in a statement that the move will lower certain risks and help reinforce XL’s reputation, as it has run operations in Ireland for most of its history.

Many companies have been incorporated in Caribbean islands for some time due to the tax benefits that they can provide. The islands have traditionally used their low tax rates to lure multinational corporations and hedge funds. But the recession has hurt revenue for many islands in the British Caribbean, which could lead to higher taxes for companies based there.

XL plans to ask shareholders to approve the change in the next several months, and complete the transaction on July 1. The proposal also needs the approval of the Grand Court of the Cayman Islands.

XL says it doesn’t expect the proposed move to have any material impact on its financial results. It will continue to trade on the New York Stock Exchange under the “XL” ticker.