Lloyd’s of London is seriously considering setting up a subsidiary in Dublin to safeguard its access to European markets, the Irish Times revealed today.
The insurer will present a proposal to its members to establish a branch in an EU country next month, and Dublin remains one of the key shortlisted destinations.
Lloyd’s opening a branch in Dublin would create “particular issues for the Central Bank,” the Irish Times reported.
A Lloyd’s subsidiary would need a different set of regulatory supervision to a normal insurance company due to the Lloyd’s structure; where risk is taken on by syndicates of members instead of the company itself.
To create a fully-operational new subsidiary, Lloyd’s members will have to agree on sending a substantial investment of capital to the venture.
Lloyd’s opening a branch in Dublin would offer a considerable boost to Dublin’s financial centre, according to the Irish Times.
After the Brexit vote the Lloyd’s of London specialist insurance and reinsurance marketplace announced it would move part of its operations out of London, over fears the UK would leave the single market for financial services.
The insurer said it had to take proactive measures to protect its 11% revenue share from EU markets, but would keep headquarters and main operations in London.
Lloyd’s chairman, John Nelson, said London’s status as a global insurance hub was at risk after the country voted to leave the EU.