Liberty Specialty Markets, a London-based unit of Liberty Mutual Insurance Co., will redomicile its insurance company from the U.K. to Luxembourg following Britain’s decision to leave the European Union, the insurer announced on Friday.

Several other insurers with U.K. operations have announced plans to establish units in EU countries since Britain voted to leave the bloc last year, but most have not redomiciled existing operations.

U.K.-based insurers which operate in and from other European Economic Area member states are currently able to do so via EU “passporting” rights. The EEA includes all EU member states, Iceland, Lichtenstein and Norway.

“It is possible that these rights will not be preserved post-Brexit and Liberty Specialty Markets considers it prudent to plan on the basis that they will not be preserved,” a Liberty Specialty Markets spokesman said in an email.

“That led to LSM’s decision to operate via an insurance company domiciled in Luxembourg. However, instead of setting up a new company in Luxembourg and keeping its U.K. company separate, LSM is proposing to redomicile its existing U.K. company to Luxembourg. We will retain a significant presence in London via a U.K. branch of the Luxembourg company. We believe that this is the best solution for our clients, as it gives them continuity of the company they are used to dealing with, and they will not have to deal with two separate companies post-Brexit. We will also continue to offer Lloyd’s paper in the EU post-Brexit.”

No jobs will move from London to Luxembourg, he added, and Liberty Specialty Market's worldwide headquarters will remain in London and will become a branch of the Luxembourg-domiciled company.

Liberty Specialty Markets also named Eric Daout as general manager of its Luxembourg companies.

Previously, Mr. Daout was managing director of Cigna Insurance Europe.

Since announcing in July that it would be establishing its post-Brexit European headquarters in Luxembourg, Liberty Special has established and licensed an in-house coverholder in Luxembourg, Liberty Specialty Markets Europe S.à r.l., which began underwriting on behalf of Liberty Specialty Market’s U.K. insurance company, Liberty Mutual Insurance Europe Ltd., from branches throughout Europe on Nov. 1, the statement said. 

“The structure that we are announcing today will set us up perfectly to take advantage of the opportunities that we have in Europe in the post-Brexit environment,” said Liberty Specialty Market’s  president and managing director Matthew Moore, who assumed his role in August, said in the statement. “Moving our insurance company to Luxembourg will minimize any disruption to our clients and staff by providing continuity of our insurance company paper. The post-Brexit structure we have chosen will mean that for our clients it will be business-as-usual.”