Brexit concerns drive Sompo International move into Europe

Bermuda-based Sompo International Holdings has announced that the company plans to establish a new European insurance headquarters based in Luxembourg as a direct result of the UK voting to leave the European Union.

In a statement Sompo International said that European business is a key strategic component to Sompo International’s growth prospects. Along with many insurers operating in the UK, the company has been formulating a strategy to address issues relating to the country’s decision to leave the European Union, in particular the potential loss of EU passporting rights. The company stated that this strategy recognises that there remains significant uncertainty over the terms of the final agreement.

The new entity, SI Insurance (Europe), will also write reinsurance business. Incorporated in and operating out of Luxembourg, SI Insurance (Europe) will provide a solution for the company’s clients in the European Union, as well as creating a base for continued business expansion in Europe. More details will be released in the near future and regulatory approval is anticipated in the second quarter of 2018. SI will maintain its presence in the Lloyd’s market and its current offices in London and continental Europe.

“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,” said John Charman, chairman and CEO of Sompo International. “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.”