On Tuesday, Liberty Special Markets (LSM), part of the Liberty Mutual Insurance Group, announced its intention to base its EU operations in Luxembourg folloiwng the UK's decision to leave the EU.
According to Liberty, the move follows a detailed analysis of potential jurisdictions, with the aim of ensuring the LSM's post-Brexit structure complements its european strategy. It will seek regulatory approval to set up a capitalised insurance company and insurance intermediary in Luxembourg to continue to serve both Lloyd's and company paper from its offices throughout the EU and Switzerland.
Luxembourg was chosen due to its robust regulatory environment and well-respected regulator and strong financial services experience.
Nick Metcalfe, LSM's President and Managing director, said "We have ambitious plans for growing the business that we do within and from the EU, and Luxembourg best fits the design principles we set ourselves to best position our post-Brexit structure. It is important to us to locate ourselves in a robust regulatory environment, and Luxembourg offers us exactly that. The regulator is well-respected, pragmatic and insurance-specific and so undertands the market very well."
Liberty is the latest in the line of a number of leading insurers which have chosen Luxembourg for their new EU headquarters to ensure that they can continue to serve their European clients post-Brexit, including AIG, FM Global, CNA Hardy, Hiscox and RSA Insurance Group.