UK insurer Hiscox will set up its new EU subsidiary in Luxembourg as it plans for life after Brexit, opting for the duchy over Malta.
In an announcement on Tuesday, Hiscox said all its European business would be written through its new continental subsidiary, with the Luxembourg base covering compliance, risk and internal audit.
“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”, said Hiscox.
Earlier this year, Hiscox announced it was weighing up the choice of Luxembourg or Malta as the home for its EU operations as it made contingency plans following Britain’s impending exit from the bloc. Brexit is almost certainly likely to lead to the loss of passporting rights on the continent for UK financial services.
Last month, insurer Lloyds of London opted for Brussels as the home of its new European base.
US-based insurer AIG is also setting up a new EU base in Luxembourg, but an expected rush to Dublin has not transpired, with some insurers saying that the regulatory requirements there were too onerous.
Hiscox also released a trading statement for the first quarter of the year. Premium income grew 17 per cent to £751m, thanks to growth in the company’s retail business.
Bronek Masojada, group chief executive said:
We have had a strong start to the year thanks to our long-term investment in Hiscox Retail, particularly in the small business sector. Hiscox London Market continues to face challenging conditions.