May 3, 2017 / 2:24 PM / 5 months ago

Impact on insurers from Britain's vote to leave the EU

European Council President Donald Tusk shows British Prime Minister Theresa May's Brexit letter in notice of the UK's intention to leave the bloc under Article 50 of the EU's Lisbon Treaty, at the end of a news conference in Brussels, Belgium March 29, 2017. REUTERS/Yves Herman

(Reuters) - U.S. commercial property insurer FM Global is planning to have a hub in Luxembourg following Britain’s decision to leave the European Union, the head of its European division told Reuters last week.

This follows recent announcements by Lloyd’s of London, the world’s largest speciality insurance market, and U.S. insurer AIG (AIG.N) that they have picked Brussels and Luxembourg respectively for their EU operations.

Below are plans for EU subsidiaries proposed by insurers:


British motor insurer Admiral Group Plc (ADML.L) said last year it could move its European business to Ireland or another country. It said earlier this year it was looking at a large number of locations and expected to make a decision within two months.


U.S. insurer AIG (AIG.N) said in March it will set up a European subsidiary in Luxembourg, in addition to its European headquarters in London.


Lloyd’s of London insurer Beazley Plc BEZG.L said last year it had filed an application with the Central Bank of Ireland to get approval for its Irish reinsurance business to become a European insurance company.


Chesnara Plc (CSN.L), an insurance-focused takeover specialist, already has an insurance company in the Netherlands but could move its headquarters there, depending on the regulatory environment in Britain after negotiations to leave the EU.


U.S. commercial property insurer FM Global is planning a European hub in Luxembourg following Britain’s decision to leave the bloc.


Lloyd’s of London underwriter Hiscox Ltd (HSX.L) said earlier this year it was in talks with regulators in Luxembourg and Malta over setting up a new insurance base to serve EU clients.


Lloyd’s of London, an integral part of the British business scene since the 17th century, has chosen Brussels as the site for its EU subsidiary, it said in March.


Japanese-owned insurer MS Amlin operates under the “Societas Europaea” structure. That makes it relatively easy to move to a different EU jurisdiction if needed, subject to regulatory approval.


British life insurer Royal London Mutual Insurance Society plans to turn its Irish business into a regulated subsidiary, it said in March.


Bermuda-domiciled insurer XL Catlin (XL.N) said its UK business XL Insurance Company SE has branches across Europe and also operates under the “Societas Europaea” structure.

Compiled by Carolyn Cohn and Noor Zainab Hussain; Editing by Keith Weir

Our Standards:The Thomson Reuters Trust Principles.
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