Insurer CNA Hardy has announced on Tuesday its decision to open a new European subsidiary in Luxembourg as it prepares for Brexit.
The CEO of CNA Hardy explained that the Grand-Duchy was the "optimum jurisdiction" for its new EU base due to its central geographical location, stable economic and political environments, and "professional approach of the Luxembourg regulator".
"We are in the business of providing certainty for our customers, and in an increasingly uncertain political environment, we must ensure we act now to provide continuity to our employees, customers and brokers," CEO David Brosnan said in a press release.
"We will be recruiting a local management team to be based in Luxembourg, comprising risk, finance and compliance functions," Brosnan added.
The company has already started to set up the Luxembourg subsidiary and expects the process to be complete by early 2019 - when talks on the exit of the UK out of the European Union are set to be coming to an end.
The company began planning right after the referendum last year, to ensure it would maintain an ability to "write and service European Union business," Dino Robusto, Chairman and CEO of CNA said in a press release, adding the company was committed to its European operations and to the enhancement of its global reach.
"Establishing a new subsidiary in Luxembourg will enhance our ability to do just that," Robusto said.
The news comes just one day after British insurance company RSA announced it had also chosen Luxembourg as a new post-Brexit EU base, from where it plans to run activities in France, Spain, Germany, Belgium, and the Netherlands.
Insurance companies AIG, FM Global, Liberty Specialty Markets, and Hiscox have already announced they would establish new European bases in Luxembourg, while Australian company QBE Insurance announced on Tuesday it would set up its post-Brexit base in Brussels.
(Barbara Tasch, email@example.com, +325 49 93 732)