(Reuters) - U.S. insurer Travelers Cos Inc said on Tuesday its l European arm will create a subsidiary in Dublin in response to Britain’s vote to leave the European Union.
The company said it would apply for authorisation of a new, wholly owned insurance subsidiary incorporated in the Republic of Ireland.
Insurers are making contingency plans after Britain’s vote to leave the bloc means they risk losing “passporting” rights that allow UK financial services firms to trade in Europe without the need for locally regulated entities.
“This new subsidiary will enable Travelers to continue to seamlessly serve its customers and broking partners in Ireland and across Europe when the UK exits the European Union, as currently planned in March 2019,” Travelers said.
The plan will not affect Travelers’ British operations, it said.
“Ireland is a natural choice for Travelers to establish its EU-based subsidiary,” Matthew Wilson, CEO of Travelers Europe, said.
Dublin has emerged as the EU location for a number of players in the wider insurance market including specialist insurance groups Chaucer, part of Hanover Insurance Group, and Beazley.L.
Reporting by Noor Zainab Hussain in Bengaluru Editing by Jeremy Gaunt