(Adds detail on AIG's move from Paris to London)
By Huw Jones and Carolyn Cohn
LONDON Nov 22 U.S. insurer AIG may move
its European headquarters from London to another European Union
country because of Britain's vote to leave the EU, the head of
the AIG's European and UK operations said at an industry
conference on Tuesday.
AIG joins a growing list of finance industry companies that
have said they may have to shift some operations to continental
Europe to maintain links to customers after Brexit.
Speaking at the same conference, trade minister Mark Garnier
said the government was listening to the financial industry's
concerns over Brexit. "We will aim to limit uncertainty
surrounding business," Garnier said.
"The government fully understands the implications of Brexit
for the financial services industry," Garnier told insurance
trade body ABI's annual conference.
Banks, insurers and asset managers in Britain fear losing
access to the EU's single market, and a damaging "cliff edge"
effect of leaving the bloc if there are no transitional
arrangements ahead of any new trading terms agreed with the EU.
Anthony Baldwin, chief executive of AIG's European and UK
arms, said the group might decide in the coming year to move its
European head office from London to an EU country after Brexit,
though it would still maintain a big London hub. AIG has around
2,500 staff in Britain.
Baldwin told reporters on the sidelines of the conference he
was looking at half a dozen locations, including Dublin, though
the impact on staffing would not be material if the headquarters
moved out of London.
"At a certain point in time you have to pull the trigger in
the absence of any clarity on where negotiations are going with
the transition period," Baldwin told the conference.
"We will always continue to have a big London hub but we
might have a European headquarters elsewhere," he said.
Baldwin said AIG has experience of moving operations after
shifting its European head office from Paris to London five
years ago. About a couple of hundred jobs were moved.
"We know what it takes," Baldwin said, adding the process
had taken around 18 months.
The Lloyd's of London insurance market, underwriters Hiscox
and Beazley, and motor insurer Admiral
have also said they might shift operations from London to
centres like Dublin.
Huw Evans, director general of the ABI, said the insurance
industry should not moan about the Brexit vote, but instead
engage with politicians to find a way forward and minimise risks
to the sector.
British Prime Minister Theresa May has said she will start
formal divorce talks with the EU by the end of March.
"That timetable has not changed," Garnier said.
(Reporting by Huw Jones, editing by Carolyn Cohn and Jane