Brexit – Tokio Marine Chooses Luxembourg
In the context of the impending Brexit, Tokio Marine Group in September 2017 announced plans to set up an insurance company in Luxembourg for writing European business.
For decades, the group has been active in the European Economic Area through several of its subsidiaries, principally Tokio Marine HCC and Tokio Marine Kiln. Tokio Marine is aiming to have the new insurance company incorporated and capitalized within the first half of 2018. It will have branches across Europe, and will be supported by the existing U.K. and E.U. group operations.
The Luxembourg-based company intends to write all business classes that are currently offered by Tokio Marine in Europe, mostly property and casualty insurance. However, it also is a specialist insurer of accidental death, disability, sickness and term life for groups and individuals, with a focus on high-risk categories, including professional athletes, entertainers, ships’ crews, and pilots; as well as providing war and terrorism cover for security and logistical support personnel and those working on humanitarian projects. Currently, it writes life business in London at Lloyd’s for risks in the U.K., continental Europe, the Americas, the Middle East and Asia. In the future, it intends to use Lloyd’s Continental facilities in Brussels instead.
The company commented that its “decision ensures it will be business as usual for our customers when the U.K. leaves the E.U., providing them with a stable, long term solution”.