In an interview today with Bloomberg, the CEO of Lloyds of London, Inga Beale, set out the organisation’s Brexit strategy. Ms Beale confirmed that Lloyds had chosen to set up a subsidiary in Brussels, which would allow it to secure continuous insurance cover for all its customers on the continent. Ms Beale told Bloomberg that they are at the stage of setting up the physical office and have started the hiring process for employees to man the new office. Ms Beale said that insurance with customers on the continent affects around 5% of Lloyds overall revenue, and therefore 5% of Lloyds overall business will have to flow through the Brussels subsidiary. Ms Beale stressed that despite this all revenue would return to London, and therefore the overall impact on Lloyds’ business in London is negligible; it is merely the mechanism by which the business is sent into London that will change, with “a bit more cost and a less streamlined approach”.
Lloyds of London is an insurance market located in the City of London which operates predominantly in general insurance and reinsurance. Looking forward, Ms Beale told Bloomberg that Lloyds is looking closely at developments in fintech, or “insuretech” as Lloyds calls it, and how new companies may affect their market. Ms Beale also confirmed that Lloyds will continue to invest in Asia, and that the organisation is seeing 60% of growth in Asia at the moment. In addition, Lloyds is looking to Latin America as the insurance underwriting business is growing in both Mexico and Columbia.