Lloyd's of London is homing in on Luxembourg for its new EU camp post-Brexit.
The insurance market, which will keep the majority of its operations in London, had narrowed its shortlist to five possible locations – Ireland, Germany, the Netherlands, Belgium and Luxembourg. It has previously ruled out a move to Malta.
However, the Press Association is now reporting Lloyd's is leaning towards Luxembourg, while Germany is thought to be its least favourite option.
The final decision on the new EU base is expected to be formally announced by the end of the first quarter of this year.
Lloyd's of London has not responded to City A.M.'s request for comment at time of writing.
Like many financial firms in the City, Lloyd's uses passporting, a complex set of rights which allows firms in the UK to do business in the EEA and vice versa. It is largely thought the UK will not be able to hold onto these rights once it revokes its EU membership.
Lloyd's chairman John Nelson, an ardent Remain supporter, has previously warned London's status as an insurance leader was at risk because of the Brexit vote. He has also cautioned that, while his organisation might need to shift some of its business away from the UK, "it won't be Lloyd's losing out, it will be the UK".
Meanwhile, ahead of the referendum, Lloyd's then-risk chief Sean McGovern said that Brexit would "create a level of uncertainty, for Lloyd’s, for the London market, as well as the UK and European economies, we have rarely experienced".