US insurer AIG plans to set up a European Union subsidiary in Luxembourg, the biggest financial services firm so far to announce plans to establish an EU hub as a response to Britain's decision to leave the regional bloc. Several other insurers have said they are looking to set up new centres in the EU if Britain loses access to Europe's single market as a result of Brexit, but few have announced firm plans.
"This is a decisive move that ensures AIG is positioned for whatever form the UK's exit from the EU ultimately takes," Anthony Baldwin, Chief Executive of AIG Europe said in a statement. AIG will keep its European headquarters in London, the insurer added. AIG has previously said it was also looking at Dublin as a possible EU hub. AIG said the proposed changes were expected to be completed in the first quarter of 2019, subject to regulatory approval.