Dublin is one of the cities in the frame as US insurer AIG considers moving its European headquarters from London to another EU country because of Brexit, the head of AIG's European and UK operations said at a conference on Tuesday.
AIG joins a growing list of finance industry companies that have said they may have to shift operations to continental Europe or Ireland to maintain links to customers after Brexit.
Speaking at the same insurance trade body ABI conference, UK trade minister Mark Garnier said the government was listening to the financial industry's concerns over Brexit. "We will aim to limit uncertainty surrounding business. The government fully understands the implications of Brexit for the financial services industry."
Banks, insurers and asset managers in Britain fear losing access to the EU’s single market and a damaging “cliff-edge” effect of leaving the bloc if there are no transitional arrangements ahead of any new trading terms agreed with the EU.
London hub
Anthony Baldwin
, chief executive of AIG’s European and UK arms, said the group might decide in the coming year to move its European head office from London to an EU country after Brexit, though it would still maintain a big London hub. AIG has around 2,500 staff in Britain.
He told reporters on the sidelines of the conference that he was looking at half a dozen locations, including Dublin.
“At a certain point in time you have to pull the trigger in the absence of any clarity on where negotiations are going with the transition period. We will always continue to have a big London hub but we might have a European headquarters elsewhere.”
Shift operations
The Lloyd’s of London insurance market, underwriters
Hiscox
and Beazley, and motor insurer Admiral have also said they might shift operations from London to centres like Dublin.
Huw Evans, director general of ABI, said the insurance industry should not moan about the Brexit vote, but instead engage with politicians to find a way forward and minimise risks to the sector.
British prime Minister Theresa May has said she will start formal divorce talks with the EU by the end of March. – Reuters
