Tokio Marine has become the latest carrier to select the Grand Duchy as the location of its post-Brexit EU hub.
In a statement, the company announced that it is seeking regulatory approval to establish an insurance company in Luxembourg in preparation for Brexit, to ensure “business as usual” and to allow it to continue servicing clients in the European Economic Area.
The new company will have branches across Europe, and will be supported by the existing UK and EU group operations.
Subject to regulatory approval, Tokio Marine is aiming to have the new company incorporated and capitalised within the first half of 2018 to enable Tokio Marne HCC and Tokio Marine Kiln to start writing business.
The company intends to write all business classes that are currently offered by Tokio Marine in Europe.
Commenting on the announcement, Tokio Marine Kiln CEO, Charles Franks said: “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.”
The Grand Duchy has emerged as the preferred destination for insurers seeking to establish EU subsidiaries in a bid to safeguard access to the EU following Brexit, with Tokio Marine joining the likes of AIG, CNA Hardy, FM Global, Liberty, Hiscox and RSA in its decision.
Barry Cook, CEO of Tokio Marine HCC International Holding: “Luxembourg is at the centre of Europe and hosts some of its most important institutions. 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.”