31 May 2017Insurance

FM Global gains Luxembourg license for EU hub after Brexit

Commercial and industrial property insurer FM Global has been granted insurance license in Luxembourg where it will set up a new hub to write business across the European Economic Area (EEA) once the UK leaves the European Union.

The license to FM Insurance Europe, a newly-formed subsidiary, will allow the company to continue delivering insurance coverage to its policyholders throughout the EEA, where it has operated for more than half a century.

Chris Johnson, executive vice president, will serve as the managing director of the new EU subsidiary.

"We chose Luxembourg as our EEA hub because it’s a multinational business-friendly financial centre with regulatory expertise that enables us to remain true to our mutual insurance company business model,” said Johnson said. "Most notably, Luxembourg is a hub that permits EU passporting—which fits our business model perfectly."

The passporting mechanism provides a company authorised in one member state the ability to conduct cross-border business without being required to apply for any additional authorisation or hold assets locally.

FM Global further stated that its London operations will remain a critical part of its business strategy.

Several other insurers like American International Group (AIG) and Bermuda-based Hiscox have also planned to launch their new entities in Luxembourg.

Lloyd’s of London has selected Brussels, and Markel Corporation has planned to capitalise a German insurance company in Munich post-Brexit.

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7 December 2017   Commercial and industrial property insurer FM Global has appointed Randy Hodge to senior vice president, underwriting and reinsurance.
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28 July 2017   Commercial property insurer FM Global has made key changes to its management team, moving leaders within the company into new roles in Europe and Asia.
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