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Lloyd's, the specialist insurance and reinsurance market, has announced that it willbe setting up a new European insurance company to be located inBrussels, following Brexit.

Lloyd's chief executive, Inga Beale, said in astatement that Lloyd's intends to be ready to writebusiness for the January 1, 2019 renewal season, subject toregulatory approval.

'Carry on without interruption'

Once approved, Lloyd's will be able to write risks fromall 27 European Union and three European Economic Area states afterthe United Kingdom has left the EU.

Ms. Beale said, "It is important that we are able to provide themarket and customers with an effective solution that means businesscan carry on without interruption when the U.K. leaves the EU.

"Brussels met the critical elements of providing a robustregulatory framework in a central European location, and willenable Lloyd's to continue to provide specialist underwritingexpertise to our customers.

"I am excited about the opportunities this venture will offerthe market by providing that important European accessefficiently."

No immediate impact on existing policies

Although the U.K. government has triggered Article 50, itremains a full member of the European Union for at least two moreyears and, Lloyd's said, there was no immediate impact on existingpolicies, renewals, or new policies, including multi-year policies,written during this period of time.

Ms. Beale added, "It is now crucial that the U.K. government andthe European Union proceed to negotiate an agreement that allowsbusiness to continue to flow under the best possible conditionsonce the U.K. formally leaves the EU. I believe it is important notjust for the city but also for Europe that we reach a mutuallybeneficial agreement. We stand ready to help and support thegovernment as best we can."

Learn more: www.lloyds.com/lloydseurope.

Related: Inside Lloyd's: Writing a reinsurance risk atLloyd's of London [video]