Commercial property insurer FM Mutual will establish a new base in the region following the UK’s departure from the European Union, a senior company official has revealed.
The US-headquartered firm will set up a post-Brexit subsidiary in Luxembourg, according to Chris Johnson, an executive vice president who oversees FM Global’s European business.
Johnson told Reuters that the new subsidiary, FM Insurance Europe, will issue policies in the EU and other countries. He added that the insurer will still continue many business operations in the UK, where it employs around 200 people.
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Roles will have to be duplicated to maintain service to UK clients while issuing coverage across Europe, Johnson noted.
He added that new staff would need to be added to the Luxembourg subsidiary, including members of the board, a managing director and other key roles. He clarified, however, that there will be no large-scale movement of employees from the UK.
According to Johnson, FM Global selected Luxembourg because of its regulatory expertise, understanding of global business, and talent base.
“We wanted a country that was used to a multinational environment,” Johnson said in an interview with Reuters. “If you can’t hire accountants, insurance professionals and lawyers, you’re in a world of hurt.”
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