QBE Insurance chooses Brussels as its post-Brexit base
While insurance group CNA Hardy will set up a European subsidiary in Luxembourg
QBE Insurance is to set up a post-Brexit base in Brussels, according to reports in the Financial Times.
The move will be seen as a further upset to Dublin’s hopes of becoming a post-Brexit insurance hub in Europe, after Lloyds announced in March that it had also chosen Brussels as its post-Brexit base.
Meanwhile CNA Hardy, a specialist commercial insurance provider, has confirmed that it will establish a European subsidiary in Luxembourg to ensure it can continue to operate across the EU post-Brexit.
CNA Hardy confirmed that the process of setting up the Luxembourg subsidiary has already began and should be completed by 2019.
The news comes just a day after the decision of UK-based RSA to set up a subsidiary in Luxembourg to look after its German, French, Spanish, and Dutch business.
In May this year JP Morgan announced that it would be moving staff to Dublin in a move to secure its EU business post-Brexit, however the banking giant warned of Dublin’s “binding constraint” in respect of its infrastructure, including housing, schools and transport.
Read more: More firms will follow JP Morgan - Kenny
Dublin had previously been seen as the city of choice for major insurers due to a number of factors including its legal system and close proximity to London. However the city has been losing out to other European cities including Frankfurt, Luxembourg, and Brussels.
“Brussels is pretty compelling for us as our biggest existing European business is in Belgium,” Richard Pryce, ceo of QBE’s European operation, told the Financial Times.
Pryce went on to say that the decision was not a difficult one for the insurer to make.
(Additional reporting by Reuters).