Lloyd's of London to create EU base next year in response to Brexit

Insurance market Lloyd’s of London will become one of the first City firms to implement plans in response to Brexit when it creates a new base in the European Union next year.

The Financial Times reported that the 328-year-old insurance market has a shortlist of five locations in the trading bloc to be put to its members in February, subject to regulatory clearance.

Earlier in the year Lloyd’s chairman John Nelson said London’s reputation as a global leader in insurance was at risk by Brexit and warned that Lloyd’s would not be losing out, but the UK would from quitting the EU.

The new business will cost tens of millions to set up and would increase Lloyd's operating costs.

Chancellor Philip Hammond has called for a so called ‘soft’ Brexit which calls for as much access as possible to the European single market and could also mean maintaining membership of the customs union. The single market is a concern for financial institutions as it ensures passporting rights, which makes conducting business across the continent easier through a single licence.