Lloyd's begin post-Brexit financial exodus with shock decision that will delight Juncker
LLOYD'S of London have started their post-Brexit financial exodus by opening up a new financial hub in Brussels, the capital of the European project.
Lloyd's chooses Brussels for post-Brexit EU hub
Inga Beale, chief executive officer at Lloyd's of London, picked Brussels to set up the new post-Brexit financial centre.
The decision to move jobs to Brussels will fly in the face of Brexiteers who rejected the EU - including the insurer's chairman Lord Blackwell, who is a well-known pro-Brexit supporter.
Mrs Beale said the new financial hub will open up in 2019 is a Brexit insurance office, as a way to continue operating with European business as normal.
The move follows the failure of the insurance market to secure 'passporting' rights in London for financial companies to conduct business across the EU after Brexit.
Inga Beale, chief executive officer at Lloyd's, picked Brussels
Around 700 people work in the Lloyds centre in London
She told Bloomberg: "Brussels will always allow us to operate with the changes that will come with Brexit.
"We can secure continuous investment from our European partners, seamlessly."
Mrs Beale added that she expects the insurer's business to boom following the Brussels move.
She noted that Brussels had a "robust reputation for regulation and multilingual talent".
In a surprise admission, the firm's boss admitted that Brussels was picked over Paris because Belgium was believed to be more likely than France to remain in the EU long-term.
There is uncertainty surrounding post-Brexit role of the City
Unite: Lloyds job cuts nothing to do with Brexit
Brussels will always us to operate with the changes that will come with Brexit
The insurer will move 100 jobs to the EU stronghold and take around 5% of the firm's total business.
Currently, Lloyds of London employs about 700 people in the British capital, amid a growing uncertainty over the role of the City after Brexit.
Following the Brussels announcement, JP Morgan revealed they were making preliminary moves to Dublin.
However, Mrs Beale tried to calm nerves in Britain, by claiming that "in the end, nothing will really change in the City".
She added that Brexit will add cost and complicate the financial operations.
Lord Blackwell, a rare prominent Brexiteer in the City, said even if some operations move abroad - to Madrid, Frankfurt and Paris - "nothing can challenge London".