Japanese insurer Sompo in November 2017 announced it would set up its new European headquarters in Luxembourg in the wake of Brexit, citing in particular the potential loss of E.U. passporting right and looming uncertainty. The new entity, SI Insurance Europe, is to be owned by Bermuda-based Sompo International Holdings and will offer both insurance and reinsurance. Sompo is mainly a specialty provider of property and casualty insurance.

The new firm may start operations in the second half of 2018 as regulatory approval is expected in the second quarter of 2018. Sompo will maintain its presence in the Lloyd’s market and its current offices in London and continental Europe.