Hiscox announced today it will set up its new European subsidiary in Luxembourg in the wake of Britain's decision to leave the EU.
The insurance firm had narrowed its decision down to either Luxembourg or Malta. It said it picked the former because of its "pro-business position, strong financial services experience and well-respected regulator, and is close to many of our major markets".
All of the insurer's retail business in Europe, a key growth area for the firm, will be channelled through the new EU subsidiary.
Hiscox already employs 350 people across seven EU countries outside of the UK. The insurer said such operations "will continue to operate without interruption".
Meanwhile a new team, understood to be around 10 people, will be recruited to deal with core functions such as compliance, risk and internal audit. There will be no underwriting function at the Hiscox's new EU base.
Retail versus Lloyd's
The insurer, famed for being a driving force in Lloyd's of London, also reported its first quarter results.
Retail gross written premiums jumped 18.6 per cent (on a constant currency basis) to £375.4m.
“We have had a strong start to the year thanks to our long-term investment in Hiscox retail, particularly in the small business sector," said Hiscox chief executive Bronek Masojada.
US operations were the stand out performer and largest retail market. Gross written premiums surged 54.7 per cent to £132.2m, up 33.5 per cent once the impact of foreign exchange was stripped out.
Hiscox Lloyd's of London performance sagged 8.6 per cent on a constant currency basis. But gross written premiums were propped by foreign exchange movements, up 0.4 per cent to £157.7m. Nevertheless, Masojada concluded the London Market "continues to face challenging conditions".