Tokio Marine picks Luxembourg for EU unit after Brexit
Tokio Marine Group has revealed its plan to set up an insurance company in Luxembourg for writing European business after Brexit.
The company has started the process with the Commissariat aux Assurances (CAA) to apply for the regulatory approval. Currently, the company has presence in the European Economic Area (EEA) through its subsidiaries, Tokio Marine HCC and Tokio Marine Kiln.
The new insurance company is expected to be incorporated and capitalized within the first half of 2018, enabling Tokio Marine HCC and Tokio Marine Kiln to start writing business including with Japanese customers.
The new company will have branches across Europe, and will be supported by the existing UK and EU group operations. The plan is to write all business classes that are currently offered by Tokio Marine in Europe.
Tokio Marine stated that the new insurance company will ensure that regardless of the potential outcome of the current Brexit negotiations, it will be able to continue servicing its clients in the EEA and offer a smooth transition.
Barry Cook, CEO of Tokio Marine HCC International Holding, said: "Luxembourg is at the centre of Europe and hosts some of its most important institutions. The country is focussed on supporting the financial service industry and its regulator has an experienced, robust and pragmatic approach. Post-Brexit, Luxembourg is likely to become an important market place for Property and Casualty insurance in Europe and we are looking forward to contributing to that new development."
Charles Franks, CEO of Tokio Marine Kiln, added: "Luxembourg is an excellent base for us and we are excited about the opportunities this new company presents. Most importantly, this decision ensures it will be business as usual for our customers when the UK leaves the EU, providing them with a stable, long term solution.
"The new company will complement our Lloyd’s platform operation in the EU which will be written through the Lloyd’s European Subsidiary in Brussels. Access to these two platforms will allow us to maintain our commitment to our clients and our innovative approach to product development in Europe."
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