Volkswagen’s captive re-domesticating to Germany

Volkswagen Insurance Company dac, the Dublin-based captive insurer of the Volkswagen Group (VW), has started the process of re-domesticating to Germany.

Tibor Boettcher, CEO of the VW captive, told sister title Captive Review that from 1 January 2027 the captive portfolio will be written from Germany.

Boettcher said the decision was driven by a need for increased “operational resilience” to better manage a number of EU regulatory requirements faced by the captive, and its planned consolidation into mother company Volkswagen Financial Services.

Boettcher pointed to the EU’s Digital Operational Resilience Act (DORA), and Corporate Sustainability Reporting Directive (CSRD) as two regulations difficult for the captive to manage alone.

“Everything related to regulatory reporting, and the regulatory fulfilment of requirements, we think is getting more and more difficult outside your home jurisdiction,” Boettcher said.

Speaking on the planned consolidation, he said, “this is a requirement for the future because of our size and the development of our portfolio.”

Once consolidated, the captive will also then face IFRS reporting requirements.

“Bringing a captive to IFRS reporting in a group like Volkswagen is not an easy endeavour, therefore we think it makes sense to be closer to headquarters, to utilise headquarters’ central functions like accounting, HR and compliance,” Boettcher added.

As well as being closer to VW headquarters, moving the captive to Germany also brings it closer to VW’s in-house broker, which Boettcher said was advantageous.

There were nine captives domiciled in Germany at the end of 2024 according to the Captive Review World Domicile Update.

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