Saturday 24 August 2019

Dublin to land first major Brexit casualty? Lloyds of London to establish EU base in 2017

‘If we are not able to access the single market... the inevitable consequences for Lloyd’s will be that we will transact the business onshore in the EU,’ its chairman said. Photo: Bloomberg
‘If we are not able to access the single market... the inevitable consequences for Lloyd’s will be that we will transact the business onshore in the EU,’ its chairman said. Photo: Bloomberg

Michael Cogley

Dublin could be amongst of a short list of destinations that could house Lloyd's of London new European offices.

The iconic insurance market that has become synonymous with the London financial district is exploring the viability of five European locations, including Dublin, to move part of its operations to after Brexit, it has been reported.

According to a report in the Financial Times Lloyd's will look to put a proposal about the move to its members in February.

The market, which has become one of the first major London businesses to set a date for partly moving out of London post-Brexit, will look to use the new hub to conduct business using the "passporting system".

Under EU passporting rules financial service firms can trade through the union from a single location, in this case its new EU office.

The paper reports that the market's chairman John Nelson said it must act quickly to protect the 11pc of its revenues coming from Europe.

It is understood the market would rather house its EU operations in London, but that would only be possible if trade between the UK and the EU for financial firms remains unchanged.

The new location is predicted to cost in the tens of millions, with Lloyd's having to capitalise the venture separately.

Online Editors

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