352 year old LLoyds of London to establish EU base next year.

[sasguru]

"Lloyd’s of London has become one of the first major City businesses to put a timetable on plans to move a part of its operations to the EU in preparation for Brexit. "

https://www.ft.com/content/a3d0eff4-...2-f57d90f6741a

[GB9]

"Lloyd’s of London has become one of the first major City businesses to put a timetable on plans to move a part of its operations to the EU in preparation for Brexit. "

https://www.ft.com/content/a3d0eff4-...2-f57d90f6741a

Why are you so far behind everyone else? They said they were doing this months ago.

[sasguru]

Why are you so far behind everyone else? They said they were doing this months ago.

Maybe I'm trying subconsciously to shut out bad news.

[GB9]

Maybe I'm trying subconsciously to shut out bad news.

What's bad about it? I thought you were going to make a fortune out of Brexit.

[sasguru]

What's bad about it? I thought you were going to make a fortune out of Brexit.

I am, possibly. Its bad for the country though.
We should look on the bright side though - low level back office operations will likely remain in London

[GB9]

I am, possibly. Its bad for the country though.
We should look on the bright side though - low level back office operations will likely remain in London

How is the movement of a handful of people bad? They are doing what I said would happen, opening a subsidiary to cover the 4% of their business they need passporting rights for.

[sasguru]

How is the movement of a handful of people bad? They are doing what I said would happen, opening a subsidiary to cover the 4% of their business they need passporting rights for.

I know you like making numbers up, Got a link for the 4%? I suspect it's rather more than that.
It's not just them though :

Japanese banks plan to move London operations within six months - Business Insider

[NotAllThere]

Maybe I'm trying subconsciously to shut out bad news.

No it's because it was announced yesterday.

How is the movement of a handful of people bad?

How do you know it's a handful?

They are doing what I said would happen, opening a subsidiary to cover the 4% of their business they need passporting rights for.

Where do you get 4% from?

The FT says: “The subsidiary couldn’t just be a post box. It has to have the infrastructure for a Solvency II system of governance, including local actuaries, underwriters, compliance staff and executives."

They are forced to move to Europe - they can't not do it. If the overhead is too great just to maintain the 11% (the correct figure), then they'll move more over to make it cost effective.

[sasguru]

The FT says: “The subsidiary couldn’t just be a post box. It has to have the infrastructure for a Solvency II system of governance, including local actuaries, underwriters, compliance staff and executives."

They are forced to move to Europe - they can't not do it. If the overhead is too great just to maintain the 11% (the correct figure), then they'll move more over to make it cost effective.

Yes, 11% of a business is definitely worth saving particularly as a move doesn't then preclude servicing the other 89%. The reinsurance business (especially for shipping) is a bit of an outlier in that it is already more global than others.

[GB9]

No it's because it was announced yesterday.

How do you know it's a handful?

Where do you get 4% from?

The FT says: “The subsidiary couldn’t just be a post box. It has to have the infrastructure for a Solvency II system of governance, including local actuaries, underwriters, compliance staff and executives."

They are forced to move to Europe - they can't not do it. If the overhead is too great just to maintain the 11% (the correct figure), then they'll move more over to make it cost effective.

I got 4%, (the correct figure) from this article in September when they announced their intentions The 11% is premiums from the EU that wouldn't necessarily be lost unless you are writing an article portraying the worst case scenario.

"Lloyd’s would lose about £800m of premiums if it lost passporting rights, 4% of the total."

It would only need a handful of staff. If you remember Frankfurt announced a license for a Japanese bank with the grand total of 15 jobs.

"But the group will keep its London base. “This has been our home for 328 years and it will remain our headquarters.”"

And you also need to remember that while there are 5.5k UK companies that rely on passporting, there are over 8k eu companies that need passporting to continue business in the UK. So either they open subsidiaries here or they kiss goodbye to their UK income.