We have made considerable progress around Chubb’s operational plans post Brexit and we can now inform you about the following Brexit milestones:
We have made several changes to the corporate structure of Chubb European Group.
- In April we converted from a Limited (“Ltd”) company to a public limited company.
- On 19 July 2018, Chubb European Group and ACE Europe Life converted to Societas Europaea (SE). They are now known as Chubb European Group SE and ACE Europe Life SE.
- On 11 July 2018, Chubb received authorisation from the Board of the French regulator Autorité de Contrôle Prudentiel et de Résolution (ACPR) whereby Chubb European Group SE and ACE Europe Life SE will re-domicile to France on 1 January 2019. This is subject to Chubb fulfilling certain administrative requirements by the end of 2018.
- Until 31 December 2018, Chubb European Group SE and ACE Europe Life SE will still be domiciled and have their registered office at the same address in England and will remain authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
- From 1 January, 2019, the new registered address for Chubb European Group SE and ACE Europe Life SE will be La Tour Carpe Diem, 31 Place des Corolles, Esplanade Nord, 92400 Courbevoie, France.
- From 1 January, 2019, Chubb European Group SE and ACE Europe Life SE will be supervised by the ACPR, 4 Place de Budapest, CS 92459, 75436 PARIS CEDEX 09 and operate in the UK – initially at least – as an EEA branch.
We believe that these developments are very important as they bring clarity to what we are doing and these are important milestones in our Brexit preparations.
From the outset, our primary aim has been to ensure a seamless transition and to offer certainty and continuity of service for all our customers and our business partners, regardless of location or the final outcome of the Brexit negotiations.
We are confident the structures we have developed achieve these objectives.
At each stage of the process, we have worked closely with the French and UK regulators and authorities, who have been extremely helpful as we have executed on our strategy
How the new structure will work and what it means:
- An SE is a public company registered under EU corporate law and formed in accordance with the law of the Member State in which it has its registered office. SE status enables Chubb European Group and ACE Europe Life to redomicile to another EU jurisdiction – France – and continue to undertake business both around the EU and into the UK.
- Customers will benefit from continuing to receive insurance cover from the same legal entity with the same level of capital. In addition there will be no change to the level of customer service.
- Specifically, for UK customers this means contract certainty and certainty of insurance cover. The French companies will operate in the UK under passporting rules until Brexit or expiry of any transition period. After that time and if required, Chubb intends to seek authorisation of the branches of its French companies in the UK. In the event of a ‘Hard Brexit’ where no transition period is agreed between the UK and EU, Chubb’s UK branches will benefit from the UK government’s temporary permissions regime. This regime will enable firms like Chubb to undertake new business within the scope of their permission, enable them to continue performing their contractual rights and obligations, manage existing business and mitigate risks associated with a sudden loss of permission.
- For customers based in the EU there will also be no disruption as the French authorised business for Chubb European Group SE and ACE Europe Life SE will be able to passport across the EU. This means there will be no complicated portfolio transfers or changes in insurers which might otherwise be experienced.
- We anticipate that these changes will allow us to continue to benefit from the S&P “AA” rating assigned to core operating companies within the Chubb Group.
Given the scale and significance of what is happening, you may have questions regarding our Brexit plans and how they might impact on your business specifically.
If you would like to discuss these further, please get in touch with your main contact at Chubb.
Regional President, Europe