Lloyd's of London underwriter Hiscox has decided to establish a new EU subsidiary in Luxembourg to underwrite its retail business in Europe following Britain's vote to leave the EU.

Hiscox, which underwrites a range of risks from oil refineries to kidnappings, said the process of establishing the subsidiary would begin immediately, and it expected to complete the restructuring well in advance of March 2019.

“Luxembourg was selected for its pro-business position, strong financial services experience and well-respected regulator, and is close to many of our major markets,” Hiscox said in a statement.

The company had told Reuters in February that it was in talks with regulators in Luxembourg and Malta over setting up a new insurance base to service EU clients after Britain leaves the bloc. – Reuters