Hannover Re parent commits to UK expansion despite Brexit

Germany’s Talanx, the majority shareholder of Hannover Re, wants to continue expanding in the UK despite the country’s expected exit from the European Union.

“We do not anticipate any immediate direct repercussions on our branches in the United Kingdom or our customer relationships with UK business partners,” Immo Querner, Talanx chief financial officer, said in a statement. “On the contrary, our goal is to further expand our business in this market,” he noted.

Only recently Talanx’s subsidiary HDI Global announced the launch of a new Scottish operation by opening an office in Glasgow. The industrial lines insurer already has offices in London, Birmingham and Manchester. The UK represented 9 percent of Talanx’s gross premium income in 2015.

In the short term, Querner expects increased market volatility on the currency, bond and stock markets due to the result of the EU referendum. Over the medium to long term, however, he expects markets to normalize.

“As an international insurance group active in the United Kingdom, Brexit does not have any significant implications for us,” he explained.