The impact of the Brexit vote has already taken its toll on one major global insurer – with shares in QBE Insurance Group trading around 6.5 per cent lower on Monday morning.
According to a report at Forbes
, QBE’s share price has dropped more than 10 per cent in the last two trading sessions alone with concerns mounting about the company’s exposure to both the UK and the rest of Europe. Around 30 per cent of its gross written premiums come from Europe.
With that in mind the company has moved quickly in an effort to quell concerns issuing a statement:
“The referendum outcome may require a revised approach in relation to approximately £500 million of insurance and reinsurance premium that QBE currently sources from EU member countries that is written via branches of UK regulated entities under current EU passporting rules,” the statement reads.
“Should EU passporting rules not be preserved, QBE will be required to renew this business into newly established licensed EU entities.”
Though a UK exit from the EU is not a 100 per cent certainty, and is likely to take years even if it does occur, the potential transfer of business operations still strikes home about the impact of the vote on the insurance industry.
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