Lloyd’s of London reported that it has received licence approval from the National Bank of Belgium for Lloyd’s Insurance Co.
Lloyd’s Brussels will be able to write non-life risks from the European Economic Area (EEA), so Lloyd’s customers can continue to access the market.
“Since the UK referendum on EU membership Lloyd’s has been working hard to ensure that whatever the outcome of the Brexit negotiations our partners across the EEA will continue to enjoy access to Lloyd’s unique offering,” said Inga Beale, Lloyd’s CEO.
Vincent Vandendael will take up the post of chief executive officer of Lloyd’s Brussels in addition to his role as Lloyd’s chief commercial officer.
Belgium Minister of Finance Johan Van Overtveldt said Lloyd’s will significantly strengthen Brussels as a financial centre. “We are looking forward to welcoming more London-based insurance companies and brokers to Brussels, which lies at the heart of Europe and is home to the main European decision-making centres,” the finance official said.
Regulated by the National Bank of Belgium and fully Solvency II compliant, Lloyd’s Brussels will start writing business beginning January 1, 2019.
Insurance carriers and reinsurers whose European headquarters have traditionally been London have been creating new EU subsidiaries in preparation for when Great Britain leaves the EU.
Lloyd’s announced its decision in March 2017 that Brussels was the its choice for a European Union outpost.
“There’s a good talent base available in Belgium,” Beale told an American audience recently on why Lloyd’s chose Brussels. “Their regulators have a good reputation globally, and for Lloyd’s reputation, we thought it important to go somewhere where there is a robust regulatory regime and no question marks above the regulators.”
She noted that Lloyd’s 80 individual syndicates are being asked by regulators for a contingency plan in a post-Brexit world and Lloyd’s has to be the contingency plan for them.
While a lot of Lloyd’s EU activity will still be delegated to London, many syndicates will still choose to have a presence in EU countries to be closer to customers, she said.
Other insurers have looked to Luxembourg for their post-Brexit subsidiaries, including AIG, CNA, FM Global and recently, Tokio Marine.
Topics Excess Surplus Europe London Lloyd's Uk
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