Insurance giant Tokio Marine Group is the latest to announce a new European base to ensure continuity for trading with EU customers in the wake of the UK’s Brexit move.
Luxembourg has been selected by the company, and it has begun the process to establish an insurance company in Luxembourg, applying for regulatory approval with the Commissariat aux Assurances (“CAA”).
Tokio Marine Group has been active in the European Economic Area (“EEA”) for decades, primarily with subsidiaries Tokio Marine HCC and Tokio Marine Kiln.
The new Luxembourg insurance company will provide continuity to clients and partners regardless of the potential outcome of the current Brexit negotiations, the company said today.
Tokio Marine hopes to have the new insurance company incorporated and capitalised within the first half of 2018 so that Tokio Marine HCC and Tokio Marine Kiln can begin writing business, including with Japanese customers. Tokio Marine’s new EU company will have branches across the continent, and will be supported by the existing UK and EU group operations, underwriting all business classes that are currently offered by Tokio Marine in Europe.
Barry Cook, CEO of Tokio Marine HCC International Holding, commented; “Luxembourg is at the centre of Europe and hosts some of its most important institutions. The country is focussed on supporting the financial service industry and its regulator has an experienced, robust and pragmatic approach. Post-Brexit, Luxembourg is likely to become an important market place for Property and Casualty insurance in Europe and we are looking forward to contributing to that new development.”
Charles Franks, CEO of Tokio Marine Kiln, also said; “Luxembourg is an excellent base for us and we are excited about the opportunities this new company presents. Most importantly, this decision ensures it will be business as usual for our customers when the UK leaves the EU, providing them with a stable, long term solution. The new company will complement our Lloyd’s platform operation in the EU which will be written through the Lloyd’s European Subsidiary in Brussels. Access to these two platforms will allow us to maintain our commitment to our clients and our innovative approach to product development in Europe.”
