Liberty confirms Luxembourg as post-Brexit European hub
Liberty Specialty Markets (LSM), part of the Liberty Mutual Insurance Group, has officially announced that it intends to headquarter its post-Brexit EU operations in Luxembourg.
LSM will be seeking regulatory approvals to operate via an insurance company and insurance intermediary domiciled in Luxembourg, to continue to offer both Lloyd’s and Company paper from its offices throughout the EU and Switzerland.
The company stated that the move follows a detailed analysis of potential jurisdictions, with the aim of ensuring that LSM’s post-Brexit structure complements its European strategy.
According to the statement, LSM will maintain its London headquarters.
"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," Nick Metcalf, LSM’s president and managing director, commented. "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."
Metcalf added: "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. 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."
As the preparations for Brexit are gaining momentum, insurers operating in London’s international insurance hub are getting worried that they may lose their passporting rights to operate in the EU.
Insurers like American International Group (AIG), CNA Hardy, RSA Insurance Group and Bermuda-based Hiscox have recently announced their plans to launch new entities in Luxembourg.
Lloyd’s of London has selected Brussels, and Markel Corporation has planned to capitalise a German insurance company in Munich once the UK leaves the European Union.
According to a survey conducted by Intelligent Insurer, Ireland has been voted as the most attractive location, primarily due its geographical proximity to the UK and London.
Join us at Intelligent InsurTECH Europe 2017 - Use code "Save20" to save 20% on selected tickets until July 15th
Today’s stories
Chubb enhances cyber coverage in new product targeting tech firms
South Korean market must reform to fulfil potential
Moore Stephens strengthens actuarial capabilities with merger
New Lloyd’s coverholder targeting cyber, financial lines launched in Singapore
Up to 40% of some insurers’ revenues at risk from insurtech
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
