Sompo International to open EU headquarters in LuxembourgReprints
Sompo International Holdings Ltd. said Monday that it will open a new European insurance headquarters based in Luxembourg, joining a long list of insurers looking to sidestep Brexit.
The new entity, SI Insurance (Europe), will also write reinsurance business, Pembroke, Bermuda-based Sompo said in a statement, adding that European business is a key strategic component to SI’s growth prospects.
Sompo said that it has been forming a plan to address issues related to the United Kingdom’s decision to leave the European Union, in particular the potential loss of so-called EU “passporting” rights that allow U.K. financial services firms to trade in Europe without the need for locally regulated entities.
SI Insurance (Europe) will be incorporated in and operating out of Luxembourg and serve the company's EU clients as well as create a base for continued business expansion in Europe.
Sompo said it will release more details in the near future and expects regulatory approval in the second quarter of 2018. The company said it will maintain its presence in the Lloyd’s of London market and its current offices in London and continental Europe.
Many insurers have announced plans to set up offices in Luxembourg and other locations in response to the Brexit vote, including American International Group Inc., FM Global and CNA Hardy, part of CNA Financial Corp.