Brexit has certainly shaken things up for the insurance industry with a host of top names setting up new European subsidiaries amid the threat of losing their passporting rights once Britain officially exits the EU. The likes of Lloyd’s of London,
Beazley and Markel were among the early movers – and now we can add a new name to that list.
Tokio Marine Group has today revealed that it will set up an insurance company in Luxembourg to write European business.
According to a release issued this morning, the firm has started the process with the Commissariat aux Assurances (CAA) to apply for regulatory approval in the tiny European country. Its aim is to ensure that subsidiaries such as Tokio Marine HCC and Tokio Marine Kiln can continue to operate comfortably throughout the European Economic Area regardless of the outcome of Brexit negotiations.
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“Luxembourg is at the centre of Europe and hosts some of its most important institutions,” said Barry Cook, CEO of Tokio Marine HCC International Holding. “The country is focused 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.”
The firm hopes to have the new insurance company incorporated and capitalised within the first half of 2018 with branches across Europe supported by the existing UK and EU operations.
“Luxembourg is an excellent base for us and we are excited about the opportunities this new company presents,” added Charles Franks, CEO of Tokio Marine Kiln. “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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