Post-Brexit EU insurance operations will be run from Luxembourg, Liberty Specialty Markets (LSM) has confirmed.
The London market arm has reportedly been leaning towards Luxembourg for several months; Reactions’ sister publication The Insurance Insider reported this in May.
LSM said the move “follows a detailed analysis of potential jurisdictions”, aiming to ensure that its post-Brexit structure “complements its European strategy”.
LSM will maintain its London headquarters, the insurer said, while seeking regulatory approvals to operate via an insurance company and insurance intermediary domiciled in Luxembourg.
Together, these would enable LSM to continue to offer insurance on both Lloyd’s and its own company paper via offices throughout the EU and Switzerland.
The Lloyd’s market itself opted for Brussels, in an announcement made in March.
LSM said it was still mulling the optimal structure for its new Luxembourg hub.
The insurer said it expects to make a further announcement about that, to its clients and employees, later this year.
Nick Metcalf, LSM’s president and managing director, said: “We have ambitious plans for growing the business that we do within and from the EU, and Luxembourg best fits the design principles we set ourselves to best position our post-Brexit structure.
“It is important to us to locate ourselves in a robust regulatory environment, and Luxembourg offers us exactly that. The regulator is well-respected, pragmatic, and insurance-specific and so understands the market very well,” said Metcalf.
“Our primary objective was to minimise disruption to our clients and policyholders and employees, and I hope to be able to demonstrate how we have achieved that, when we set out how our new structure will work after the summer,” he continued.
“For our clients it will be very much business-as-usual. Europe is a key market for us and we are working towards expanding our capabilities and product offering in Europe over the coming months and years,” Metcalf added.