Bermuda-based speciality insurer Sompo International said it will set up a new European insurance headquarters based in Luxembourg as part of its Brexit plan.
Dubbed SI Insurance (Europe), the Luxembourg-incorporated entity will also write reinsurance business. Sompo said European business is a vital element to SI’s growth prospects.
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 expects regulatory approval for its plans in the second quarter of 2018. The company said it will maintain its presence in the Lloyd’s of London market and its existing offices in London and continental Europe.
Sompo said that the decision is part of its strategy to address the issues that can rise after the UK has decided to leave the European Union, in particular the potential loss of EU passporting rights. This strategy recognizes that there remains significant uncertainty over the terms of the final agreement.
SI chairman and CEO John Charman said: “We have been developing our strategy for Europe for some time and SI Insurance (Europe) will enable us to provide our broad range of products more widely and efficiently, as well as strengthening our service capabilities to our international clients.
“Establishing SI Insurance (Europe) in Luxembourg will be the first step in our ambitious plan to create a strong position in the European commercial P&C marketplace.”
The Sompo International companies are wholly owned subsidiaries of Sompo Holdings, whose core business includeone of the largest property and casualty insurance groups in the Japanese domestic market.
In October 2017, Sompo International formed alliances with Sanlam Limited and SAHAM Finances through a partnership agreement executed by Sompo Japan Nipponkoa Insurance.
The partnership will give access to new markets by enabling Sompo to use the experience and existing footprint of Sanlam Limited and SAHAM Group’s insurance subsidiaries.
Image: Sompo International selects Luxembourg for new EU base after Brexit. Photo: courtesy of Stuart Miles at FreeDigitalPhotos.net.