The insurer has received approval for the new unit to service clients in Ireland and across the E.U.
Berkshire Hathaway Insurance Group Inc. announced that it has received the Central Bank of Ireland’s approval to establish a Dublin unit. The goal is to be prepared for any form of Brexit, to be able to service clients in Ireland as well as throughout the European Union.
The new Berkshire Hathaway European Insurance will act separately while remaining fully owned.
According to the Berkshire Hathaway Insurance Group, the new unit will be an Irish subsidiary. It is called Berkshire Hathaway European Insurance and while it will operate as a designated activity company, it will remain a subsidiary owned in its entirety by Berkshire Hathaway International Insurance Ltd. in the United Kingdom. This, according to a statement from the company, reported by businessinsurance.com.
This new subsidiary, Berkshire Hathaway European Insurance, will start writing business by the close of March. As Brexit Day is expected to take place on March 29 unless extensions are granted and accepted, this will mean that the insurer’s subsidiary will be writing business in time for the change to occur.
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The Irish Berkshire Hathaway Insurance Group subsidiary will be used by a number of the insurer’s brands.
Berkshire Hathaway European Insurance will make it possible for a number of Berkshire Hathaway’s other insurance brands to use its services and writing. Among the European brands for the insurer include Faraday, Berkshire Hathaway Specialty Insurance, and MedPro, among others. The company’s statement said they will all be using the new Irish subsidiary instead of using the U.K. based company.
Before the new Dublin unit, Berkshire Hathaway International Insurance Ltd. was used for transactions. Those will be transferred to the new Irish subsidiary in time for Brexit, where necessary or where there is a legal requirement to do so. The Berkshire Hathaway said that it has made this decision to “achieve a smooth transition for its customers and brokers upon the UK leaving the European Union.”
That said, Berkshire Hathaway Insurance Group stated that it will continue its general insurance business operations in the United Kingdom via Berkshire Hathaway International Insurance. It will also continue using that company for its overseas markets under existing licenses. A rising number of London-based insurance companies have made similar moves to European cities in order to prepare themselves for Brexit’s impact.