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Japanese insurers seek new European bases to ready for Brexit

Staff Writer | September 6, 2017
The U.K.'s decision to leave the European Union is prompting major Japanese nonlife insurers to look for new bases on the continent.
Tokio Marine Holdings
Insurance   Searching for a base
Insurers are concerned that after the U.K. departs the union, they will lose the so-called passport that allows financial services companies licensed in one member to operate anywhere within the bloc, Nikkei reports.

Tokio Marine Holdings will set up a new company in Luxembourg by June 2018, to keep its EU operations going. Luxembourg, despite a population of only about 600,000, offers ample talent in the financial sector.

The new company will consolidate operations that are currently run by U.K.-based Tokio Marine Kiln and the London office of U.S. subsidiary Tokio Marine HCC, both specialty insurers.

Sompo Holdings is likewise considering Luxembourg as a candidate for its European base, which is currently located in London. The insurance group aims to establish the new company in 2018.

Mitsui Sumitomo Insurance, part of MS&AD Insurance Group Holdings, will move its European headquarters from London to Brussels by March 2018.

The Belgian capital was chosen in part because the Japanese company already has a presence there after acquiring U.K.-based insurer in Amlin in 2016.

Also encouraging the move is the decision by Lloyd's of London, the world's biggest insurance market, to set up a new EU base in Brussels.