AIG chooses Luxembourg as its European hub outside the UK
American International Group, Inc. today announced its plans to locate an insurance company in Luxembourg to ensure continued smooth operation of its business across the European Economic Area (EEA) and Switzerland once the United Kingdom leaves the European Union.
From 2019, AIG proposes to have two AIG subsidiary insurance companies in Europe – one in the UK to write UK business and one in Luxembourg to write EEA and Swiss business, which will have branches across the EEA and Switzerland. AIG currently writes business in Europe from a single insurance company based in the UK, AIG Europe Limited, which has branches across the EEA and Switzerland.
Anthony Baldwin, Chief Executive of AIG Europe 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. 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.””
In the Financial Times, an AIG spokesperson added: “The decision to choose Luxembourg was taken after a thorough review process and for a combination of reasons. The majority of the business we will write out of the Luxembourg entity will be in continental Europe and geographic proximity is a benefit. It also offers an environment which is a hub for financial services generally, including fintech.”