Sompo creates Brexit unit for EU expansion

Bermuda-based Sompo International Holdings (SI), a specialty provider of property/casualty re/insurance and wholly owned subsidiary of Sompo Holdings, plans to establish a new European insurance headquarters based in Luxembourg.

The new entity, SI Insurance (Europe), will write insurance and reinsurance business. European business is a key strategic component to SI’s growth prospects, according to the Nov. 20 press release.

“We have been developing our strategy for Europe for some time and SI Insurance (Europe) will enable us to provide our broad range of products more widely and efficiently, as well as strengthening our service capabilities to our international clients,” said John Charman, chairman and CEO of SI.

“Establishing SI Insurance (Europe) in Luxembourg will be the first step in our ambitious plan to create a strong position in the European commercial P&C marketplace,” Charman added.

SI groups all Sompo worldwide units including assets from the Endurance acquisition. Through its operating subsidiaries, SI writes agriculture, professional lines, property, marine and energy, and casualty and other specialty lines of insurance. As a reinsurer SI underwrites catastrophe, property, casualty, professional lines and specialty lines.

Along with many insurers operating in the UK, SI has been formulating a strategy to address issues relating to the country’s decision to leave the European Union, in particular the potential loss of EU passporting rights. This strategy recognizes that there remains significant uncertainty over the terms of the final agreement.

Incorporated in and operating out of Luxembourg, SI Insurance (Europe) will provide a solution for the company’s clients in the EU, as well as creating a base for continued business expansion in Europe. Regulatory approval is anticipated in the second quarter of 2018. SI will maintain its presence in the Lloyd’s market and its current offices in London and continental Europe.

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