Liberty Specialty Markets (LSM), part of Liberty Mutual Insurance, is planning to redomicile its insurance company from the UK to Luxembourg, while maintaining its substantial London presence.
The decision was taken in preference to setting up a separate insurance company.
LSM has also today announced the appointment of Eric Daout as the General Manager of its Luxembourg companies. Daout was formerly the Managing Director of CIGNA Insurance Europe.
Alongside Daout, LSM’s European businesses will be led by Dieter Winkel, President of LSM Reinsurance based in Cologne, and Kadidja Sinz, European Head of Insurance based in Paris.
LSM’s President & Managing Director Matthew Moore said, “Our European insurance and reinsurance businesses are highly valued at LSM. 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. Moving our insurance company to Luxembourg will minimise any disruption to our clients and staff by providing continuity of our insurance company paper. We have ambitious growth plans for our teams based in Europe, and I am delighted that we have been able to secure a first class leadership team in Eric Daout, Dieter Winkel and Kadidja Sinz, ably supported by high calibre service-driven underwriting teams. We also remain committed to London and will retain a substantial presence there.
“The post-Brexit structure we have chosen will mean that for our clients it will be business-as-usual. LSM will continue to be able to offer Company and Lloyd’s paper throughout the UK and Europe, and one company paper for pan-EU/UK risks. Our brokers will continue to receive the same high levels of service as they currently do from our teams in Europe, without any disruption caused by changing our insurance company paper. Europe is a key market for us and we are working towards expanding our capabilities and product offering in Europe over the coming months and years.”
LSM announced in July that it would be establishing its post-Brexit European HQ in Luxembourg. LSM has since established and licensed an in-house coverholder in Luxembourg, Liberty Specialty Markets Europe S.à r.l. (LSME).
LSME began underwriting on behalf of LSM’s UK insurance company Liberty Mutual Insurance Europe Limited (LMIE) from branches throughout Europe on 1 November. It is intended that LSME will also underwrite on behalf of Lloyd’s Brussels when it commences business. The move of LMIE to Luxembourg, the establishment of a UK branch, and the appointment of Eric Daout as the General Manager of its Luxembourg operations, are all subject to regulatory approvals.