Lloyd’s of London would make an announcement on its new European subsidiary by the middle of April at the latest, its chairman John Nelson said yesterday, as it prepares for Britain’s exit from the European Union.

The world’s largest speciality insurance market, which started life in Edward Lloyd’s coffee house in 1688, has been one of the most vocal London financial institutions about the need to set up an EU subsidiary as Britain readies to leave the bloc.

“We will be ready to make an announcement in relation to our move to Europe in Q1, certainly by Easter,” Nelson told Reuters in an interview on the sidelines of the World Economic Forum in Davos.

Lloyd’s has said it is considering five locations for its new subsidiary, including Dublin.

Industry observers say all insurers looking to set up EU subsidiaries have included Dublin among their options, attracted by its language, location and tax and regulatory systems.

Nelson did not give any further detail on the insurance market’s choice of location. However, The Business Observer reported last week that Malta was in pole position.

Nelson said Lloyd’s would move some senior staff members over to the new EU entity once it is established.

“We want to have a real presence in Europe with underwriters having the ability  to underwrite. It will be a mixture of people from various departments such as regulatory, compliance, risk management etc”.

Around 15 per cent of Lloyd’s business comes from Britain, 11 per cent from the rest of Europe and 40 per cent from the United States.

“I’m confident London will remain a very powerful financial centre whatever happens with Brexit,” Nelson said.

Lloyd’s of London staff hold their annual Armistice Day service at the Lloyd’s building in the City of London. Photo: Eddie Keogh/Reuters