Luxembourg, Frankfurt, Paris and Dublin seem to be the prefered destinations for the financial companies in search for a solution to maintain their European passport whatever the Brexit's outcome may be.
AIG chose Luxembourg for its proximity to the insurer's European clients, position as a founding member of the EU, stable economy and expertise in financial services and "fintech", an AIG spokeswoman said. The switch would involve "changes at senior leadership level", she added, without giving more details. AIG currently has a branch in Luxembourg with a staff of three. According AIG representatives, the proposed changes are expected to be completed in the first quarter of 2019, subject to regulatory approval.
Other insurers and major banks have also included Luxembourg on the short list of their possible EU affairs headquarters: the fund arm of British insurer Prudential is setting up a management company and distribution firm in Luxembourg, while Hiscox is still expected to choose between Luxembourg and Malta. By the end of March, Lloyd's of London is due to announce its final decision, with Malta seemingly making its first option, while Dublin and Luxembourg are also on its shortlist.
Eighty-eight insurance companies and 216 reinsurance firms have a presence in Luxembourg, according to financial development agency Luxembourg for Finance.