Like many other English financial companies, Lloyd’s is contemplating various possibilities of establishment of a European subsidiary. Brexit means parting ways with European passport and with free access to the markets of the European Union. A list of host countries for the future branch has been drawn up.
The countries considered are Luxembourg, Ireland, the Netherland, Belgium and Germany. Malta, once a candidate, has been discarded. The final decision will be taken by the end of this quarter. While Germany does not seem to be the hot favorite, Lloyd’s preference is likely to go Luxembourg’s way. In any case, the overwhelming majority of operations will remain based in London.
According to the lawyers, the establishment of a European base will be complicated for Lloyd’s because this is not the case of a traditional insurer but rather of a market of underwriters. Several syndicates operating within Lloyd’s are currently adopting the same approach. A considerable part of them seem to favor Dublin for linguistic reasons in addition to the legal system and its proximity with London.
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