RSA Group, one of the largest UK commercial insurers, has received regulatory approval to transfer the European insurance business of its UK subsidiary, Royal & Sun Alliance Insurance plc (RSAI), to RSA Luxembourg S.A. (RSAL), its recently established post-Brexit hub.
The Part VII transfer, which was sanctioned by the High Court and is effective from 1 January 2019, will see the Group’s Luxembourg subsidiary become the insurer for all risks currently underwritten through RSAI’s European branch network.
If they relate to risks located in the European Economic Area (EEA), insurance policies written out of RSAI’s Global Risk Solutions or Commercial Risk Solutions businesses will also transfer to RSAL, the company explained.
RSA established the office in Luxembourg to ensure continuity of its business with European customers after the UK leaves the European Union (EU) in March 2019.
Following the transfer, RSAL will become the new EU head office of RSA’s branches in Belgium, France, Germany, the Netherlands and Spain, allowing each to focus on their core businesses without experiencing any disruption.
“Achieving Court approval of our Part VII transfer was a key milestone in our plan to secure a business-as-usual approach for our customers and brokers following the UK’s departure from the European Union,” said Richard Turner, Chief Executive Officer (CEO) of RSA Luxembourg.
“The transfer to RSA Luxembourg will minimise disruption to our business with EU-based customers and ensure we are best placed to serve UK customers’ needs in Europe,” he added.
