Travelers Europe said on Tuesday that it will apply to the Central Bank for authorisation for a new, wholly owned insurance subsidiary in Dublin to serve its European Union based companies post-Brexit. The move comes as the EU's chief negotiator ruled out retaining access to the financial services passport for UK based companies.
The US insurance company is set to follow the example of a host of other financial services companies, including Bank of America and Barclays Bank which have opted to either expand existing, or set up new, operations in Dublin following the UK's decision to leave the European Union.
In a statement, Travelers said that its new Irish entity will enable it continue to “seamlessly serve” its customers and broking partners in Ireland and across Europe when the UK exits the EU. The new Irish operation won’t affect Travelers’ existing UK-based operations, the company said.
"Ireland is a natural choice for Travelers to establish its EU-based subsidiary," said Matthew Wilson, CEO of Travelers Europe. "We have been present in the Irish general insurance market for more than 20 years, and our new company will utilise our existing branch resources. We look forward to deepening our relationships with brokers, customers and regulators in Ireland, as well as continuing to serve our policyholders who have assets throughout Europe."
On Tuesday, Michel Barnier, chief Brexit negotiator for the European Union, ruled out a special deal for the city of London, as he made it clear that he was not open to a free trade agreement which included financial services, and stated that the UK leaves the EU, it means that companies based there also lose the financial services passport.
His comments mean that locations such as Dublin, Frankfurt and Paris, will remain attractive for companies looking for EU hubs which would allow them to continue to operate on a passporting basis throughout the EU.
