Bermuda based specialty insurance and reinsurance firm Sompo International, which was formerly named Endurance, is preparing for a post-Brexit world with the establishment of a new European headquarters in Luxembourg.
Sompo International is setting up a new entity registered in Luxembourg, SI Insurance (Europe), which will underwrite both insurance and reinsurance business for the firm and will position it with access to the entire European Union after the UK leaves it.
The company said that European business is a key piece of its strategic growth prospects. The firm said that, like so many re/insurers operating in the UK, it has formulated a strategy to address the potential loss of EU passporting rights when the UK leaves the EU.
With significant uncertainty still over the terms of the final Brexit agreement, re/insurers like Sompo International cannot wait to find out how the UK intends to address these key issues and so is taking steps necessary to secure its future access to Europe.
SI Insurance (Europe) solves issues for Sompo International’s clients in the European Union, and provides the firm with a base for continued expansion in the region.
The firm said that it expects to receive regulatory approval in the second quarter of 2018.
John Charman, Chairman and CEO of Sompo International commented on the announcement, “We have been developing our strategy for Europe for some time and SI Insurance (Europe) will enable us to provide our broad range of products more widely and efficiently, as well as strengthening our service capabilities to our international clients. Establishing SI Insurance (Europe) in Luxembourg will be the first step in our ambitious plan to create a strong position in the European commercial P&C marketplace.”
Sompo International said that it will also maintain its presence in Lloyd’s of London, as well as its other offices in London and continental Europe.
It has to be assumed that as the new European headquarters set up by insurers and reinsurers in response to Brexit gain stature and importance within those firms, the location most likely to suffer as a result could be London.