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Impact on insurers from Britain's vote to leave the EU
June 6, 2017 / 8:35 AM / 6 months ago

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

(Adds CNA Hardy, QBE Insurance Group)

June 6 (Reuters) - QBE Insurance Group will set up a subsidiary in Brussels and CNA Hardy has chosen Luxembourg for one, the two companies said on Tuesday.

Insurers are setting up regulated EU subsidiaries in case Britain does not have access to the single market after Brexit so as to allow them to continue to operate across the bloc.

Below are insurers’ plans for EU subsidiaries (in alphabetical order):

ADMIRAL

British motor insurer Admiral Group Plc 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.

AIG

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

AVIVA

Aviva is converting its Irish life and general insurance branches to regulated subsidiaries to meet the needs of its Irish insurance customers after Brexit.

BEAZLEY

Lloyd’s of London insurer Beazley Plc 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. The firm said in February it will hire additional staff in Ireland.

CHESNARA

Chesnara Plc, 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.

CNA HARDY

CNA Hardy will set up a new European subsidiary in Luxembourg to allow it to operate across the EU after Britain leaves the bloc, the specialist commercial insurer, which is part of CNA Financial Corp, said.

FM GLOBAL

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

HISCOX

Lloyd’s of London underwriter Hiscox Ltd will establish a new subsidiary in Luxembourg to underwrite its retail business in Europe, it said in May.

LANCASHIRE

Lancashire said in May it has options to write EU business out of its Bermuda headquarters or via Lloyd’s of London’s Brussels base. The insurer added it was in no hurry to set up a EU base and saw itself staying in Britain for the foreseeable future.

LEGAL & GENERAL

British insurer Legal & General said in May it would move some of its investment management operations to Ireland to ensure it can continue to serve its customers after Brexit.

LLOYD‘S OF LONDON

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.

MARKEL

U.S. insurer Markel plans to apply for regulatory approval to set up a European Union subsidiary in Munich.

MS AMLIN

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.

NEON

Neon Underwriting Ltd may set up a Dublin business to sell insurance policies throughout the EU if Britain loses access to the single market, chief executive of the specialist Lloyd’s of London insurer said in December.

QBE

QBE Insurance Group will set up a subsidiary in Brussels to preserve its ability to operate across the EU, the Australian business insurer said.

ROYAL LONDON

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

RSA

RSA is planning a subsidiary in Luxembourg to act as the headquarters of its EU operations following Britain’s decision to leave the bloc. It said it chose Luxembourg because it had “multi-national expertise”, was “strategically located within RSA’s existing EU branch network” and had an experienced regulator.

STANDARD LIFE

British insurer and asset manager Standard Life said in May it was likely to choose Dublin for its EU hub.

XL CATLIN

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

Compiled by Noor Zainab Hussain and Carolyn Cohn; editing by Jason Neely

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