American International Group Inc (AIG) has announced plans to set up a European hub in Luxembourg. The move is said to ensure “continued smooth operation” of its business across the European Economic Area (EEA) and Switzerland once the UK has finalised all deals surrounding Brexit and leaves the European Union (EU).
The UK is said to be the largest area of operation for AIG. The idea of relocating to a new jurisdiction is one that several financial institutions and banks are said to consider.
Anxiety over Brexit has left firms doubting whether their business can continue to successfully operate in the UK. AIG however has stated that London will still remain as the firms main European headquarters.
Anthony Baldwin, chief executive officer (CEO) of AIG Europe said: “This is a decisive move that ensures AIG is positioned for whatever form the UK’s exit from the EU ultimately takes. AIG sees opportunity in the ongoing resilience of the UK insurance market. At the same time, we are ensuring that our clients and partners experience no disruption from the UK’s EU exit. Our Luxembourg company will be complementary to our existing structure and will be part of our single European module.”
“Luxembourg, a founding member of the European Union, offers us a secure location in a stable economy with an experienced and well-respected regulator in continental Europe close to many of our major markets.”
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