Lloyd’s has revealed its plans to establish a new European insurance company in Belgium amid the uncertain business atmosphere post-Brexit in the UK.
The company plans to write business for the 1st January 2019 renewal season, subject to regulatory approval.
After the UK’s formal exit from the European Union (EU), Lloyd’s will be in a position to write risks from all the 27 member states and three European Economic Area states through the new insurance company.
Besides, it will provide customers and partners the same access to the innovative solutions of the Lloyd’s of London.
Lloyd’s chief executive Inga Beale said: “It is important that we are able to provide the market and customers with an effective solution that means business can carry on without interruption when the UK leaves the EU.
“Brussels met the critical elements of providing a robust regulatory framework in a central European location, and will enable Lloyd’s to continue to provide specialist underwriting expertise to our customers.”
From the European Economic Area (EEA), Lloyd’s had reported a gross written premium (GWP) of £2.93bn in 2015, accounting to 11% of its GWP from all regions.
The company stated that although the UK government initiated Brexit through Article 50, the country would continue as a full member of the EU for a minimum of two more years.
As a result, it says there would not be any immediate effect on current or new policies or even renewals that includes policies written for multiple years during the 2-year period.
In another development, Lloyd’s had reported to have made a profit of £2.1bn profit in the full year 2016 compared to the 2015 profit of £2.1bn.
Image: Lloyd's building in London, UK. Photo: courtesy of Lloyd's of London/Wikimedia Commons.