Lloyd’s of London to set up EU subsidiary in Brussels

Lloyd’s of London, the world’s largest specialty insurance market, has chosen Brussels for its European Union subsidiary because of its strong regulatory framework, it said yesterday, confirming earlier reports.

Lloyd’s has been one of the most vocal financial services firms about the need for an EU subsidiary if Britain has no access to the single market after leaving the bloc.

The decision, initially reported by The Insurance Insider, comes the day after British Prime Minister Theresa May triggered Article 50 of the EU’s Lisbon Treaty, the start of a two-year countdown to Brexit.

“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,” chief executive Inga Beale said in a statement.

The EU subsidiary aims to be ready to write insurance business in time for the January 1, 2019 renewal season, Lloyd’s said.

Also yesterday, Lloyd’s of London reported profit of £2.1 billion for 2016, steady from 2015.

Workers walk past the Lloyd’s of London building in the City of London, Britain. Photo: Toby Melville/Reuters