Lloyd’s of London to unveil Brexit move as PM triggers Article 50

The governing board of Lloyd’s of London, the world’s largest insurance market, is to approve the establishment of a new base in Europe on the same day that Theresa May triggers the Brexit process.

Sky News has learnt that the council‎ of Lloyd’s will gather next Wednesday to decide whether to set up an operation in Belgium or Luxembourg in order to protect revenues generated within the European Union (EU).

Sources said on Friday that Lloyd’s was likely to announce its decision shortly after the council meeting.

The proximity of the statement to the Prime Minister’s move to invoke Article 50 will mean the insurance market’s decision acquires a symbolic importance amid ongoing debate about the City of London’s post-Brexit prosperity.

Lloyd’s, which has been in existence for well over 300 years, is among the most important financial services businesses headquartered in the UK.

Thousands of people are employed in the City by it and the insurers which ‎operate there.

‎Lloyd’s has been examining a number of locations for a new EU base, including Germany and Malta, but has narrowed its search in the last six weeks.

Luxembourg has previously been reported as Lloyd’s favoured EU location.

In a statement issued to Sky News, a Lloyd’s spokesman said: "We will present further details of our plans to open a subsidiary in the EU by the end of this month.

"It is important for Lloyd’s, the market and our customers, that we are‎ able to provide continued access to the EU once the UK formally leaves, but equally, customers in Europe want that same access to the Lloyd’s market."

Lloyd’s is due to report its annual results on Thursday, with John Nelson, its chairman, due to step down from the role shortly.

He will be replaced by Bruce Carnegie-Brown, a well-respected City figure whose roles include the chairmanship of Moneysupermarket, the price comparison platform.

London has been the world’s premier hub for specialist insurance and reinsurance for centuries, and Lloyd’s is among the City’s most prestigious institutions.

Because Lloyd’s is a market comprising a range of underwriting syndicates, the move to establish a new EU base is likely to be especially complex.

Mr Nelson has previously said that Lloyd’s had made a decision to act quickly because more than 10% of its revenues come from within the EU.

Large investment banks are also weighing the future of their UK-based operations, with Sky News revealing this week that Deutsche Bank had signed a 25-year lease on a new City base.

Goldman Sachs signalled earlier this week that it was accelerating plans to create more jobs on the Continent, with its London-based operations calling a halt to expansion.

(c) Sky News 2017: Lloyd’s of London to unveil Brexit move as PM triggers Article 50