BREXIT: confirmed relocations
Major UK and US insurers have announced plans to relocate offices or create new subsidiaries within the European Union to continue to serve clients under the passporting system as the UK negotiates its departure from the EU.
AIG announced the creation of a new a subsidiary to its existing Luxemburg branch in order to continue serving clients in the EU after Brexit. AIG gave no indication about the increase in staff and moves from London to Luxemburg, but the company will nevertheless retain a significant presence in the UK capital.
Amlin said it will re-domicile its European business, Amlin Insurance Societas Europaea, to Brussels but retain its global headquarters in London. AISE already had a branch based in Brussels, and offices in Antwerp.
CNA Hardy, a specialist commercial insurance provider for clients within the Lloyd’s and company markets, announced its intention to establish a new European subsidiary in Luxembourg.
Chubb intends to relocate its EU headquarters in Paris. The French capital historically has been one of the company’s main offices for its Continental European operations but the decision is subject to all regulatory approvals. The insurer will continue to have a “substantial presence” in London after Brexit.
US commercial property insurer FM Global is planning a European hub in Luxembourg using its existing Luxembourg-based subsidiary, FM Insurance Europe, to issue policies in the EU and other countries. It is not expecting a large-scale move from Britain.
British insurer Hiscox has decided to establish a new subsidiary in Luxembourg to underwrite its retail business in Europe. The creation of the subsidiary will take place quickly in order to complete the process well in advance of March 2019.
Lloyd's of London picked Brussels as its EU base from a shortlist of five or six countries, following a thorough evaluation of regulation, skilled multilingual resources and domestic insurance market. The new office is due to open in January 2019.
QBE Insurance Group will set up a new subsidiary in Brussels to preserve its ability to operate across the European Union.
Liberty Specialty Markets announced that it intends to base its post-Brexit EU operations in Luxembourg. The company will maintain its London headquarters.
RSA picked Luxembourg as the location of its new EU headquarters. Luxembourg will serve EU branches in Belgium, France, Germany, Spain and the Netherlands. It will primarily be an administrative office with fewer than 10 people employed.
XL Group confirmed its decision to move its principal EU insurance company, XL Insurance Company, from London to Dublin where it has had (re)insurance operations and corporate functions since 1990. The business currently has branches across Europe in France, Germany, Austria, Switzerland, Spain, Italy, Sweden, Ireland and the Netherlands.