The current Brexit negotiations are still under discussion and the ultimate outcome remains unclear. Since the Brexit referendum in 2016, Swiss Re has conducted extensive scenario planning and prepared for a range of outcomes.
Most importantly, Swiss Re remains committed to its UK business and is actively engaged with the Prudential Regulatory Authority and other relevant European Economic Area (EEA) regulators to ensure minimum disruption from Brexit. Despite the current uncertainties on how a potential Brexit will be enacted, Swiss Re will be able to maintain uninterrupted services and relationships with our clients, our employees and the re/insurance industry.
Swiss Re operates in the UK mainly through the UK-branches of its Luxembourg entities – such as Swiss Re Europe S.A. (Reinsurance), Swiss Re International SE (Corporate Solutions) and iptiQ Life S.A. (Life Capital). In preparation for Brexit, these branches have applied for licenses from the UK regulators to become authorised to continue operations in the UK after the UK leaves the EU.
If the UK leaves the EU without a 'deal' on 29th March, the UK branches of Swiss Re will benefit from the Temporary Permission Regime in the UK, which allows UK branches of Swiss Re Europe S.A., Swiss Re International SE and iptiQ Life S.A. to carry on insurance business in the UK until 2022.
As the UK branches are themselves establishments of Luxembourg-based entities, clients with business currently serviced from a UK-located branch may have to be serviced from an EU branch of the same Luxembourg entity in future. This however, shouldn't have any adverse impact on our ability to service our clients and customers or lead to significant changes to our businesses in the UK.
In addition, many of our European clients trade Insurance Linked Securities (ILS) and certain weather derivative products with our London-based carrier, Swiss Re Capital Markets Limited. This carrier is domiciled in the UK and is regulated by the Financial Conduct Authority. Swiss Re has formed a new Luxemburg-based legal entity, Swiss Re Capital Markets Europe S.A. (SRCME) and applied for authorisation to trade with EEA based clients, ensuring a seamless post-Brexit continuation for the related business relationships.
If you would like to know even more about Swiss Re's preparedness regarding Brexit, please get in touch with us:
- For client enquiries please contact your relevant client manager.
- For media enquiries please contact firstname.lastname@example.org
- For investor enquiries please contact email@example.com
We continuously monitor the situation and as soon as we have more updates, we will inform our clients and other relevant stakeholders immediately.
The Swiss Re Institute has published a paper regarding the potential impacts of Brexit on the business environment, which can be found here.