Business & Finance Club Magazine - Eye on the Economy - Switzerland: Swiss insurance giant Zurich, formerly known as Eagle Star in Ireland, is to create 240 jobs in Ireland over 2 years and it is reported to be planning to transfer its £35bn UK life insurance operation to Dublin's IFSC (International Financial Services Centre) to take advantage of the better tax regime. A senior Zurich executive cited membership of the euro as a factor in its decision to expand its operations in Ireland.

 The London Independent reports today that senior officials at the insurer have met with the UK Financial Services Authority to discuss how such a move would affect its £35bn life assurance business in the UK. The group said it "continues to explore ways to streamline its legal structure and optimise its capital efficiency", but added that "no decisions about how this will be achieved within our life businesses" had yet been taken.

The UK business would effectively become a branch of the central office in Dublin should the plan go ahead. It is understood that there would be little change to its operations in Swindon and Cheltenham, and it would still pay UK tax.