U.S. Insurer FM Global chooses Luxembourg as its new EU hub
U.S. commercial property insurer FM Global plans to locate its European hub in Luxembourg to ensure continued smooth operation of its business following Britain’s decision to leave the EU.
FM Global, which insures one in three of the Fortune 1000 list of largest U.S. companies, is setting up a Luxembourg-based subsidiary, FM Insurance Europe, S.A., to retain the right to sell insurance policies across the European Union and other countries.
Luxembourg was selected for its regulatory expertise, understanding of global business, and talent base. Chris Johnson, executive vice president in charge of FM Global’s European business told Reuters: "We wanted a country that was used to a multinational environment. If you can’t hire accountants, insurance professionals and lawyers, you’re in a world of hurt."
“Other considerations included being allowed to hold board meetings in English and have board members who are also policyholders.”
This move follows that of U.S. insurer American International Group (AIG), which last month announced it would open a hub in Luxembourg which will have branches across the EEA and Switzerland.