Bermudian-based Sompo International Holdings is to set up a new headquarters in Luxembourg for its European operations as part of its Brexit plan.

The company, which is a subsidiary of Japanese insurance giant Sompo Holdings, added that it would maintain its presence in the Lloyd’s market and its current offices in London and continental Europe.

Sompo International said in statement today: “Along with many insurers operating in the UK, SI has been formulating a strategy to address issues relating to the country’s decision to leave the European Union, in particular the potential loss of EU passporting rights.

“This strategy recognises that there remains significant uncertainty over the terms of the final agreement.”

“Passporting” allows companies based in an EU member state to service customers all over the 28-country bloc without barriers. The UK’s planned 2019 departure from the EU is likely to mean the end of its passporting rights.

John Charman, chairman and CEO of Sompo International, said: “We have been developing our strategy for Europe for some time and SI Insurance (Europe) will enable us to provide our broad range of products more widely and efficiently, as well as strengthening our service capabilities to our international clients.

“Establishing SI Insurance (Europe) in Luxembourg will be the first step in our ambitious plan to create a strong position in the European commercial property and casualty marketplace.”

The company added that it expected regulatory approval for its plans in the second quarter of 2018.