Japanese insurance holding firm Tokio Marine Group is set to establish a new insurance firm in Luxembourg in a bid to enjoy hassle free access to vast European market post-Brexit.

Tokio Marine said that it has begun the process with the Commissariat aux Assurances (CAA) to apply for the regulatory approval to establish an insurance company in Luxembourg.

Regardless of the potential outcome of the current Brexit negotiations, the new company will enable Tokio Marine to continue servicing its clients in the European Economic Area (EEA).

Pending receipt of regulatory approval, Tokio Marine believes that the new insurance company will be established and capitalised within the first half of 2018.

The new entity will allow Tokio Marine HCC and Tokio Marine Kiln to start writing business including with Japanese customers.

Supported by the existing UK and EU group operations, the new insurance company will manage branches across Europe and write all business classes which are currently offered by Tokio Marine in Europe.

Tokio Marine Kiln CEO Charles Franks said: “Luxembourg is an excellent base for us and we are excited about the opportunities this new company presents. Most importantly, this decision ensures it will be business as usual for our customers when the UK leaves the EU, providing them with a stable, long term solution.

“The new company will complement our Lloyd’s platform operation in the EU which will be written through the Lloyd’s European Subsidiary in Brussels. Access to these two platforms will allow us to maintain our commitment to our clients and our innovative approach to product development in Europe.”