Insurance firm Royal London has received approval to transfer more than £1bn worth of assets to Ireland as it ramps up its Brexit contingency planning.

The life, pensions and investment company has £114bn in total funds under management, and the High Court approved the transfer of assets on Tuesday, which will see over 500,000 policies moved.

The transfer is intended to handle the consequences of a no-deal Brexit, in which the UK’s financial services sector would lose passporting rights that allow them to function in the EU’s single market, the world’s richest trading bloc.

However, though just over £1bn gross is being transferred, due to the business being reinsured, the net asset transfer amounts to £10.5m.

The insurer has advised its policyholders that, even if an agreement between Britain and the European Union (EU) were to be reached permitting it to continue administering the polices from the UK, it is now committed to the transfer.

Royal London’s new Ireland branch has been capitalised with €40m from the parent company and one-off costs of the transfer are estimated to be £21m.

The move will create 20 new jobs in Dublin.

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