Liberty Specialty Markets (LSM) is considering Luxembourg as its post-Brexit EU hub, according to reports. Should it push through, Liberty will join several firms who have decided to set up shop in the Grand Duchy.
However, a spokesperson for the firm said it is still looking at other options: "Liberty Specialty Markets is continuing to analyse a number of options, in terms of structure and jurisdiction, in order to be able to offer a company and Lloyd's solution for trading in and from Europe post-Brexit,” said the spokesperson as quoted by A.M. Best. “We expect to give more information in June but, as yet, no decisions have been taken."
Liberty offers specialty and commercial insurance and reinsurance products across key UK, European, Middle East, US and other international locations.
Britain’s withdrawal from the EU is still two years away, and terms of the separation have not yet been negotiated. But Prime Minister Theresa May indicated last January the government will not remain in the single market, as doing otherwise means “not leaving the EU at all.”
AIG, FM Mutual, and
Hiscox have confirmed Luxembourg as their EU hub. Would-be expats are also warned against “unbearable” traffic congestion. “It will be crazy,” Jose Pedro Fernandes told Bloomberg. He is a 56-year-old taxi driver who moved to Luxembourg from Portugal 15 years ago and earns a living transporting financial workers around the jammed capital that lacks a subway and suffers from inadequate bus services.
Luxembourg for Finance, the agency for the development of the financial centre, estimates that Brexit could create some 1,000 local jobs, Bloomberg reported. According to realtors, prices are already under pressure due to current demand exceeding supply.
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