– Reuters – British insurer Hiscox has decided to establish a new subsidiary in Luxembourg to underwrite its retail business in Europe following Britain’s decision to leave the European Union, it said on Tuesday.
The company, which insures a broad range of risks from oil refineries to kidnappings, said it would start setting up the subsidiary immediately and expected the process to be completed well in advance of March 2019.
Hiscox had shortlisted Luxembourg and Malta as potential EU bases but said on Tuesday that Luxembourg had been chosen for its pro-business position, strong regulatory base and central European location.
“This is going to be the center of our European business, so it made sense to establish something physically closer to it rather than a bit far away,” Chief Executive Bronek Masojada told Reuters. “(Luxembourg) is in the centre of Europe and it is close to major markets.”
Earlier this month, Luxembourg, already a major asset management and financial services hub in Europe, said it was in talks with firms including banks, asset managers, insurance companies and fintech companies which wanted to set up shop.
Hiscox is at least the third large insurer to have selected Luxembourg as its EU location, following similar commitments by U.S. insurer American International Group and U.S. commercial property insurer FM Global.