There have been plenty of insurers announcing their intentions to move beyond the UK in light of the recent Brexit vote: and finally, one has declared its destination.
That one is American International Group (AIG) which today announced that it will locate an insurance company in Luxembourg to maintain its operations across the EEA when the UK leaves the European Union.
Its plans will see AIG have two subsidiary insurance companies in Europe from 2019 – one in the UK to write UK business and the other in Luxembourg to write business for the EEA and Switzerland.
According to Anthony Baldwin, the chief executive of AIG Europe, as the UK is its largest single operation in Europe, it will continue to support European operations from the UK and it will remain a core market.
“This is a decisive move that ensures AIG is positioned for whatever form the UK’s exit from the EU ultimately takes,” he said.
“AIG sees opportunity in the ongoing resilience of the UK insurance market. At the same time, we are ensuring that our clients and partners experience no disruption from the UK’s EU exit. Our Luxembourg company will be complementary to our existing structure and will be part of our single European module.”
“Luxembourg, a founding member of the European Union, offers us a secure location in a stable economy with an experienced and well-respected regulator in continental Europe close to many of our major markets.”
The proposed restructure is expected to complete in the first quarter of 2019, subject to regulatory approval.
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