Japanese insurer Tokio Marine Holdings is to set up an insurance company in Luxembourg, joining a growing list of specialty insurers to have chosen the Grand-Duchy for a new EU base after Brexit.
Tokio Marine said on Wednesday it started the procedure to establish a company, including applying for an insurance license with the Commissariat aux Assurances.
This will enable the company to continue offering insurance products and services to clients – including Japanese customers in EU countries – should it lose its current passporting rights (which allow it to sell services across the bloc) when Britain leaves the European Union in 2019.
"Luxembourg is at the centre of Europe and hosts some of its most important institutions," said Barry Cook, Chief Executive at Tokio Marine HCC.
"The country is focussed on supporting the financial services industry, and its regulator has an experienced, robust and pragmatic approach.
"Post-Brexit, Luxembourg is likely to become an important market for property and casualty insurance in Europe, and we are looking forward to contributing to that new development."
At present, Tokio Marine writes business in EU countries through the UK subsidiary of Tokio Marine HCC and Tokio Marine Kiln, both of which are headquartered in the UK.
It said the process of establishing the Luxembourg company could take until June 2018, subject to regulatory approvals. The new company will have branches across Europe, and will be supported by the existing UK and EU group operations.
Luxembourg is already a hub for cross-border life insurers, but it is attracting specialty insurers – specialising in marine, real estate or aviation – to set up EU bases after Brexit.
Tokio Marine will join a list of insurers heading to Luxembourg that includes AIG, Hiscox, RSA, Liberty Specialty Markets, CNA Hardy and FM Global.
(Hannah Brenton, email@example.com, +352 49 93 728)