Insurer Hiscox is the latest to announce a post-brexit subsidiary
International insurance specialist Hiscox is to open a new European subsidiary in “pro-business” Luxembourg in response to Brexit.
The firm announced the plan in its interim management statement, saying that Luxembourg was chosen for its “pro-business position, strong financial services experience and well-respected regulator” as well as its proximity to major markets.
It added that the process of establishment will begin immediately.
“Subject to regulatory approval, we expect to complete the restructuring well in advance of March 2019 in order to ensure a seamless transition for our customers, brokers and business partners,” the firm said in a press release.
Hiscox said that all retail business in Europe will be written through this new EU subsidiary.
“Our existing European business, which comprises 350 people across seven of the EU 27 (sic) countries, will continue to operate without interruption. In Luxembourg a team covering core functions such as compliance, risk and internal audit will be recruited to complement our existing structure.”
Hiscox follows US insurers AIG and FM Global who earlier this year announced they would make Luxembourg their post-Brexit EU hub.
Delanorecently reported that head of Luxembourg for Finance Nicolas Mackel said so far a dozen companies had confirmed to him they will relocate to the grand duchy in the wake of Brexit.