CNA Hardy said it will launch a European subsidiary in Luxembourg beyond its London headquarters, a move intended to continue open access to the EU market in the wake of last year’s Brexit vote in the UK.

The specialist commercial insurer is a division of property/casualty carrier CNA, and it provides coverage for clients within the Lloyd’s and company markets. Plans are to complete the process of establishment already underway by early 2019.

A local management team will be recruited to be based in Luxembourg that will handle risk, finance and compliance functions.

CNA Chairman and CEO Dino Robusto said that plans for an EU subsidiary began after the Brexit vote in 2016, with a focus on making sure it could still write and service European Union business even as it expands.

“We are committed to our operations within Europe, and building upon our global reach,” Robusto said in prepared remarks. “Establishing the new subsidiary in Luxembourg will enhance our ability to do that.”

David Brosnan, CNA Hardy CEO, called Luxembourg “the optimum jurisdiction for our European Union base due to its geographic location between three of our Continental European Offices, its stable economic and political environment and the professional approach of the Luxembourg regulator.”

CNA Hardy writes business across Europe, and also writes business at Lloyd’s through Syndicate 382 in London, Singapore, and Beijing. The company’s website explains that through its Lloyd’s platform it can write business in more than 200 countries and territories around the world.

CNA Hardy isn’t the only UK insurer to choose Luxembourg in the wake of Brexit. FM Global announced similar plans to do so in April. American International Group has said it will keep its main European headquarters in London, but also open a Luxembourg subsidiary.

Others, such as the Lloyd’s of London insurance market, will deal with Brexit by opening a subsidiary in Brussels.

Source: CNA Hardy