The firm responds to Brexit with new operation for Europe
AIG plans to open an insurance company in Luxembourg to service the European market once the UK leaves the EU. The firm’s headquarters will remain in the UK.
From 2019, AIG aims to have two AIG subsidiary insurance companies in Europe, with the UK branch writing UK business only while the new Luxembourg branch writes across the European Economic Area (EEA) and Switzerland.
AIG Europe chief executive Anthony Baldwin said: “This is a decisive move that ensures AIG is positioned for whatever form the UK’s exit from the EU ultimately takes. AIG sees opportunity in the ongoing resilience of the UK insurance market. At the same time, we are ensuring that our clients and partners experience no disruption from the UK’s EU exit. Our Luxembourg company will be complementary to our existing structure and will be part of our single European module.”
According to reports, Europe is a core market where AIG will “continue to invest and grow”.
Baldwin continued: “Luxembourg, a founding member of the European Union, offers us a secure location in a stable economy with an experienced and well-respected regulator in continental Europe close to many of our major markets.”
Until this the Luxembourg office is launched, AIG plans to continue to support its European operations from the UK, where its current largest single operation in Europe is based.