Luxembourg and not Dublin for AIG’s post-Brexit EU base
Hopes that global insurer AIG might relocate its European regional HQ to Dublin from London have been dashed, with Luxembourg selected for the switch. This is despite a strong pitch made by the IDA and Government to AIG for Dublin to become the new regional headquarters. It is understood Dublin finished as runner-up to Luxembourg from a shortlist of locations across Europe that the American insurer considered.
AIG Europe chief executive Anthony Baldwin wrote to Minister of State for Financial Services Eoghan Murphy to thank him for his engagement with the firm last year as it weighed up its post-Brexit options. Mr Baldwin told the Minister of State he had been “extremely impressed” by the rigour and experience of the Central Bank and was grateful for the insights shared with the company. “Our Irish business will continue to focus on growth and on meeting the needs of our customers in the Irish market,” he said. “Ireland has much to offer the insurance sector as our industry adapts to the future.”
AIG employs about 400 staff in Ireland across a range of activities including property casualty, IT, treasury and asset management. It also owns health insurer Laya which is number two in the market to State-owned VHI and has more than 450 staff.
In a statement issued on Wednesday, AIG said the move to Luxembourg would ensure the “continued smooth operation of its business across the European Economic Area [EEA] and Switzerland” once the UK leaves the EU.
From 2019, AIG proposes to have two subsidiary insurance companies in Europe – one in the UK to write local business and one in Luxembourg to write EEA and Swiss business, which will have branches across the region. AIG currently writes business in Europe from a single insurance company based in the UK, AIG Europe Limited.