Sompo International Holdings Ltd. plans a European expansion with a new headquarters on the continent, a move that also addresses uncertainty over the Brexit process.
The Bermuda-based insurer and reinsurer, and wholly-owned subsidiary of Japan’s Sompo Holdings, Inc. said it will launch a new European insurance headquarters in Luxembourg. Dubbed SI Insurance (Europe), the new entity will also write reinsurance business.
“We have been developing our strategy for Europe for some time and SI Insurance (Europe) will enable us to provide our broad range of products more widely and efficiency, as well as strengthening our service capabilities to our international clients,” Sompo International Chairman and CEO John Charman said in prepared remarks.
Charman added that the Luxembourg headquarters “will be the first step in our ambitious plan to create a strong position in the European commercial P&C marketplace.”
While Sompo International sees European business as a key part of its growth strategy, there’s also the pesky issue of Brexit, the UK’s referendum vote to leave the European Union. Sompo International said that it, like other insurers doing business in the UK, has been developing a strategy to address this, particularly the possible loss of EU passporting rights. The new Luxembourg headquarters will help to reduce post-Brexit risks and also fuel expansion plans, the company said.
At the same time, Sompo International noted it would continue to maintain a presence in the Lloyd’s market as well as its current offices in London and elsewhere in Europe. Regulatory approval for the new Luxembourg headquarters is expected in the 2018 second quarter, and Sompo International said it would release additional details about its expansion plans “in the near future.”
Sompo International was formerly Endurance Specialty Holdings, which Sompo Holdings purchased in late 2016 for $6.3 billion. The deal closed in early 2017. Since then Sompo International has focused on growth in a number of areas, including its London market insurance platform’s acquisition of Novae Syndicate Ltd’s financial institutions renewal rights.
Sompo International is a global specialty provider of property and casualty insurance and reinsurance,
Source: Sompo International