Insurance underwriter Hiscox picks Luxembourg over Malta as EU base after Brexit

Underwriter Hiscox was in talks with regulators in Luxembourg and Malta over setting up a new insurance base to service EU clients after Britain leaves the bloc, but yesterday announced it had chosen Luxembourg

matthew_vella
Matthew Vella
10 May 2017, 9:38am
Hiscox chairman Robert Childs
Hiscox chairman Robert Childs
Lloyd’s of London underwriter Hiscox has decided to establish a new EU subsidiary in Luxembourg to underwrite its retail business in Europe following Britain’s vote to leave the EU, instead of Malta.

Hiscox, which underwrites a range of risks from oil refineries to kidnappings, said the process of establishing the subsidiary would begin immediately, and it expected to complete the restructuring well in advance of March 2019.

“Luxembourg was selected for its pro-business position, strong financial services experience and well-respected regulator, and is close to many of our major markets,” Hiscox said in a statement.

The company had told Reuters in February that it was in talks with regulators in Luxembourg and Malta over setting up a new insurance base to service EU clients after Britain leaves the bloc. 

"Today we announce that we will establish a new European subsidiary in Luxembourg in response to Brexit. All Hiscox retail business in Europe will be written through this new EU subsidiary. Our existing European business, which comprises over 350 people across seven of the EU 27 countries, will continue to operate without interruption. In Luxembourg a team covering core functions such as compliance, risk and internal audit will be recruited to complement our existing structure," Hiscox said in its interim staement.

"The process of establishment will begin immediately. Subject to regulatory approval, we expect to complete the restructuring well in advance of March 2019 in order to ensure a seamless transition for our customers, brokers and business partners. Luxembourg was selected for its pro-business position, strong financial services experience and well-respected regulator, and is close to many of our major markets."

Hiscox is headquartered in Bermuda and is an international specialist insurer, underwriting a diverse range of personal and commercial insurance risks.

matthew_vella
Matthew Vella is executive editor at MaltaToday.