Brexit prompts Japanese insurer to shift Europe unit out of UK

Japanese insurer Aioi Nissay Dowa Insurance is to move its European business to Luxembourg from the UK in response to Brexit.

However, the European business will continue to be managed by a UK-based holding company, and Aioi will also establish a new UK-based insurer.

Aioi, part of Japanese insurance powerhouse MS&AD, is the latest company to announce that it is moving its European business out of the UK.

It is one of a string of companies to pick Luxembourg as the new location for its European business, joining AIG, FM Global, CNA Hardy, Hiscox and RSA.

The companies previously traded across Europe from the UK using financial services passporting, which allows companies based in one EU member state to trade across the zone with a single licence.

But passporting will be lost to UK-based companies once the UK leaves the European Union, which has prompted a number of companies who base their European operations in the UK to set up elsewhere.

Under the move, Aioi Nissay Dowa Insurance Company of Europe Limited, currently based in the UK, will shift to Luxembourg.

A new holding company, Aioi Nissay Dowa Europe Limited, will be set up in the UK.  At the same time, a new UK insurer, Aioi Nissay Dowa Insurance (UK) Limited, will also be established. Both the new UK insurer and the unit moving to Luxembourg will be subsidiaries of the new UK-based holding company.

Both the new UK-based holding company and the new UK insurer will be headed by chief executive Mike Swanborough.