Malta is emerging as a likely possible location for a subsidiary
of Lloyds of London after Brexit, as discussions between the
insurance firm, the Malta Financial Services Authority, and a local
law firm intensify.
According to sources who spoke to The Business Observer, Lloyds
is considering opening a subsidiary in Malta, which could take the
form of protected cell company. This kind of structure has already
proved to be very attractive for insurance companies. Other sources
which spoke to the same paper said that a delegation from Lloyds
had been sent to Malta last month, putting Malta at the forefront
as a potential candidate.
Lloyds announced a few months ago that it wanted to open an
office in another EU member state as soon as UK Prime Minister
Theresa May set article 50 in motion, triggering procedures for
Britain to leave the EU. While the company was initially
considering Dublin, Paris and Frankfurt, by October, Lloyds CEO
Inga Beale confirmed that Malta and Luxembourg had been added to
The issue that concerns Lloyds and other financial institutions
the most is the potential loss of their passporting rights, which
allow them to conduct business from one jurisdiction in all the
other member states. The loss of these passporting rights would
cost Lloyds around £800m in premiums, around 4% of its total.
In 2015, the European Economic Area (EEA) accounted for
£2.93bn or 11% of Lloyd's gross written premium.
While the firm is set on keeping its 328-year-old base in
London, its top brass would likely move to the new subsidiary,
which would have to be capitalised separately, running into tens of
Lloyds made a profit in the first half of 2016 of £1.46bn.
It has a general legal representative in Malta, Lloyds Malta Ltd,
with lawyer Louis Cassar Pullicino as its director.
Source: The Malta Independent
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