Brexit may see UK-focused motor insurer St Julians relocate to Gibraltar from Malta

Malta may lose UK-focused motor insurer St Julians to Gibraltar as a result of Brexit, Reuters reports.

Quoting a statement issued by the parent company, Marketstudy, Reuters said that their favoured proposal was to move the operation to Gibraltar.

It reported that a number of insurers that write insurance in Britain operate from Gibraltar and from Malta; if Britain loses access to the single market, Malta-based insurers will no longer be able to sell insurance into Britain.

Reuters added that Gibraltar is a British overseas territory and the ties will continue.

"An application to re-domicile St Julians has been submitted to the Malta Financial Services Authority in order to protect the business and enable the insurer to continue trading with the UK," Markerstudy said in a statement.

"The favoured proposal is to move the operation to Gibraltar."

Markerstudy already has two insurance firms in Gibraltar focusing on UK business, Markerstudy Insurance and Zenith Insurance.

Reuters also sought comments from Nigel Feetham, partner at Gibraltan law firm Hassans, who said Gibraltar and Malta were comparable jurisdictions for insurers.

"The system of law is not entirely dissimilar and the authorisation process and prudential regime in insurance are also very similar," he told Reuters.

According to the same report, Gibraltan insurers with large exposure to the European Union are also considering moving operations, Feetham said, with Luxembourg and Malta the favoured locations.