Brexit

Brexit FAQs - how it could affect our brokers

Brexit Background

Why is Brexit Contingency Planning needed?

After Brexit, it is uncertain that the UK will continue to have access to the European market and unlikely that the UK will be able to passport into the EEA.  This means that Chubb European Group (CEG) and ACE Europe Life (AEL) will no longer be able to undertake regulated activities in the EEA without obtaining EEA permissions.

The UK served a notice under Article 50 in March 2017 which kick-started a minimum two-year period for negotiations and Brexit is due to take place on 29 March 2019.

Chubb’s Brexit contingency plan is intended to allow Chubb to (i) continue writing business following Brexit in all of the territories it currently operates in; and (ii) administer existing business, in each case in the event that the UK leaves the EU without any arrangements on passporting being agreed.

Our Brexit plan

When did Chubb announce its Brexit plan?

We made an initial formal announcement on Brexit on 11 September 2017.

We have also communicated our plans to brokers and relevant third parties to inform them of our strategy and key milestones.

What is your strategic plan for Brexit?

Our strategic plan for Brexit is already operational. It has evolved in several key stages:

In 2018, as part of Chubb’s Brexit preparations both Chubb European Group SE (CEG) and ACE Europe Life SE (AEL) converted to Societas Europaea (SE). 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 has enabled 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.

On 1 January 2019 Chubb European Group SE (CEG) and ACE Europe Life SE (AEL) moved their headquarters from the UK to France and now operate through a Branch in the UK.

The registered office for both CEG and AEL is now La Tour Carpe Diem, 31 Place des Corolles, Esplanade Nord, 92400 Courbevoie, France.

The registered company number for CEG has changed to 450 327 374 RCS Nanterre.

The registered company number for AEL has changed to 497 825 539 RCS Nanterre.

The Chubb Group of companies, of which CEG is part, continues to be based at 100 Leadenhall Street, London EC3A 3BP in the UK.

Both CEG and AEL now operate under the supervision of the French regulator Autorité de Contrôle Prudentiel et de Résolution (ACPR): 4 Place de Budapest, CS 92459, 75436 PARIS CEDEX 09.

Through our strategy, customers benefit from continuing to receive insurance cover from the same legal entity with the same level of capital. In addition there is no change to the level of customer service.

Specifically, for all our 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 so-called ‘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 can passport across the EU. This means no complicated portfolio transfers or changes in insurers which might otherwise be experienced.

These changes allow us to continue to benefit from the S&P “AA” rating assigned to core operating companies within the Chubb Group.

France

Why France?

Our preferred location of France was clear and straightforward.

Chubb has a long-established, vital presence in the French market, with more than $500million in gross premium and several hundred employees serving businesses of all sizes, as well as a vibrant consumer market in which we offer a wide range of products.

Paris is also the principal office for our Continental European operation, allowing us to capitalise on the management and staff already present in the city as we build our EU headquarters.

Choosing France reflects our preferred location reflected our existing strong commitment both to the French market and the larger European market.

In considering France as the future home of our legal entity, we worked closely with the ACPR, the French regulator.

Chubb post-Brexit

How will Chubb’s Brexit plans work in reality?

Our strategic plan for Brexit is already operational. It has evolved in several key stages:

In 2018, as part of Chubb’s Brexit preparations both Chubb European Group SE (CEG) and ACE Europe Life SE (AEL) converted to Societas Europaea (SE). 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 has enabled 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.

On 1 January 2019 Chubb European Group SE (CEG) and ACE Europe Life SE (AEL) moved their headquarters from the UK to France and now operate through a Branch in the UK.

The registered office for both CEG and AEL is now La Tour Carpe Diem, 31 Place des Corolles, Esplanade Nord, 92400 Courbevoie, France.

The registered company number for CEG has changed to 450 327 374 RCS Nanterre.

The registered company number for AEL has changed to 497 825 539 RCS Nanterre.

The Chubb Group of companies, of which CEG is part, continues to be based at 100 Leadenhall Street, London EC3A 3BP in the UK.

Both CEG and AEL now operate under the supervision of the rench regulator Autorité de Contrôle Prudentiel et de Résolution (ACPR): 4 Place de Budapest, CS 92459, 75436 PARIS CEDEX 09.

Through our strategy, customers benefit from continuing to receive insurance cover from the same legal entity with the same level of capital. In addition there is no change to the level of customer service.

Specifically, for all our 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 so-called ‘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 can passport across the EU. This means no complicated portfolio transfers or changes in insurers which might otherwise be experienced.

These changes allow us to continue to benefit from the S&P “AA” rating assigned to core operating companies within the Chubb Group.

How will this impact Chubb customers and business partners?

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.

Will this affect Chubb’s credit rating?

We continue to benefit from the S&P “AA” rating assigned to core operating companies within the Chubb Group.

How will any new post Brexit operational flows ensure that customers have the same access as today to underwriting expertise and claims expertise?

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. Our client facing functions remain where they were previously, with a few exceptions.

UK operations

What will happen to your London headquarters?

Post-Brexit, Chubb will continue to have a substantial presence in London which will remain its Regional European headquarters.

Chubb and Lloyd’s

Chubb operates through Lloyd’s in the London Market. What are Lloyd’s plans for Brexit?

A core aim of Chubb’s Brexit strategy is minimal disruption for our customers, brokers and partners – this includes our operations through Lloyd’s. For details of how Lloyd’s is preparing for Brexit, visit:

https://www.lloyds.com/lloyds-around-the-world/europe/lloyds-brussels/how-to-place-risks-with-lloyds-after-brexit

What if?

Would transitional arrangements change your plans?

Chubb’s Brexit contingency planning is based on a Hard Brexit and we have to plan for the loss of passporting.

Our plans have been developed around having maximum flexibility for as long as possible and we will continue to be adaptive and respond to Brexit terms.

What does Chubb look like now?

In the London Market, what is the legal form of your company currently?

Chubb's primary operating entity in Europe is Chubb European Group (CEG) and ACE Europe Life  (AEL). Both CEG and AEL now operate under the supervision of the French regulator Autorité de Contrôle Prudentiel et de Résolution (ACPR): 4 Place de Budapest, CS 92459, 75436 PARIS CEDEX 09.

Are your companies domiciled or a branch of another entity?

Both CEG and AEL now operate under the supervision of the French regulator Autorité de Contrôle Prudentiel et de Résolution (ACPR): 4 Place de Budapest, CS 92459, 75436 PARIS CEDEX 09.

CEG, AEL and its EEA branches hold cross border permissions throughout the EEA and now operate through a Branch in the UK.