Post-Brexit moves: what we know so far

Post-Brexit moves: what we know so far

Dublin

Chaucer has chosen Dublin as the site of a new office from which it will underwrite “a broad range of international specialty business”.

Michelle Moore, former chief operating officer of Dublin-based Markel Europe, will lead Chaucer’s Dublin office.

“We see this as complementary to our Lloyd’s portfolio and a significant addition in our efforts to provide brokers and clients with an innovative and first class service,” said Moore.

Beazley has also chosen Dublin, after obtaining permission from the Central Bank of Ireland, to convert its existing Irish reinsurance subsidiary into an insurance company.

The firm said it would also establish branch offices in the UK, France, Germany and Spain in the coming months.

Beazley chief executive Andrew Horton said: “Dublin is an excellent base for our European insurance company, with a highly regarded regulatory system and local access to talented individuals who are well versed in the operating needs of a modern insurer.”

Brussels

Lloyd’s of London is setting up a European insurance subsidiary in Brussels, which will be ready to write business for the January 1 2019 renewal. From then on, Lloyd’s will be able to write risks from all 27 EU and three European Economic Area (EEA) states once the UK has left the bloc.

Lloyd’s chief executive, Inga Beale, said: “It is important that we are able to provide the market and customers with an effective solution that means business can carry on without interruption when the UK leaves the EU.

“Brussels met the critical elements of providing a robust regulatory framework in a central European location, and will enable Lloyd’s to continue to provide specialist underwriting expertise to our customers.

The Lloyd’s Franchise Board had considered Dublin, Frankfurt, Malta, Paris and Luxembourg as potential destinations for its European operation, but finally chose Brussels.

Australian insurer QBE plumped for Brussels when deciding on where to open a new office within the European Union.

The Australian insurance giant has had a branch office in the city since 2012, a key factor in QBE’s decision to set up its EU operation in the city.

Other factors included Belgium’s central geographical and political role in the EU, combined with a solid and constructive local regulator.

“Our priority is providing certainty for our customers and staff, and our decision to set up a legal entity in Belgium ensures we can provide continuity of service irrespective of the outcome of Brexit negotiations,” Richard Pryce, the chief executive of QBE Europe, said.

Brussels was the choice of MS Amlin when it came to deciding upon where to set up an EU operation. The firm is already an established player in the Belgian insurance market, and will re-domicile business to its subsidiary Amlin Insurance Societas Europea (AISE).

Kim Hvirgel, chief executive of AISE and global managing director, property and casualty, said: “We chose Belgium as our European headquarters for AISE because of its business-friendly financial centre, high-quality regulatory framework and geographical position in Europe.

Luxembourg

American International Group (AIG) has decided upon Luxembourg as the home for its new European insurance hub.

The US insurance giant intends to have two European subsidiaries by 2019, one in the UK and another based in Luxembourg. Currently, AIG’s sole European company is based in the UK which services the rest of the EEA and Switzerland.

“Luxembourg, a founding member of the EU, offers us a secure location in a stable economy with an experienced and well-respected regulator in continental Europe close to many of our major markets,” said Anthony Baldwin, the chief executive of AIG Europe.

Luxembourg’s pro-business position, financial services experience and well-respected regulator were all cited by Hiscox as reasons why it has chosen the city to be the home of its post-Brexit European office.

As Hiscox explained, all of the company’s European retail insurance business will be written through this new EU subsidiary.

“Our existing European business, which comprises over 350 people across seven of the EU 27 countries, will continue to operate without interruption,” the company noted.

In May, FM Global received a license which will allow it to deliver seamless insurance coverage to its policyholders throughout the EEA from a new base in Luxembourg.

“We chose Luxembourg as our EEA hub because it’s a multinational business-friendly financial centre with regulatory expertise that enables us to remain true to our mutual insurance company business model,” said executive vice president Chris Johnson.

RSA has also chosen Luxembourg for its new EU subsidiary which will also serve as the headquarters for its existing operations in Belgium, France, Germany, Spain and the Netherlands. RSA said Luxembourg’s experienced regulator, strategic location and multi-national expertise were behind its decision.

CNA Hardy is also setting up an EU subsidiary in Luxembourg. The process of establishment is already underway, CNA Hardy said, and is expected to be completed by early 2019.

“Luxembourg is the optimum jurisdiction for our European Union base due to its geographic location between three of our Continental European offices, its stable economic and political environment and the professional approach of the Luxembourg regulator,” said David Brosnan, CEO of CNA Hardy.

Liberty Specialty Markets, part of Liberty Mutual Group, has chosen Luxembourg as the centre for its post-Brexit European operations, with decision following what it termed “a detailed analysis of potential jurisdictions” to ensure the new outfit “complements its European strategy”.

Liberty Specialty Markets will maintain its London headquarters which along with the new Luxembourg offering will allow the firm to offer insurance on both Lloyd’s and its own company paper throughout the EU and Switzerland.

Munich

Markel International has selected Munich as the location for its new European insurance subsidiary.

The insurer is bolstering its presence in Munich to underwrite EU business previously done in London; the firm has had a branch office in Munich since 2012.

Richard Whitt, co-chief executive officer of Markel, said: “We are focused on building upon and extending the global reach of our businesses. That means that we are committed to a strategy of profitable growth of our continental European business. Establishing a new insurance company in Germany will enhance Markel’s ability to do just that.”

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