Brexit preparations update – November 2020
12 November 2020
Brexit preparations across The Ardonagh Group
As we move towards the Brexit transition period deadline on 31 December 2020, reported negotiations between the EU and the UK continue with no concrete decisions in place.
The Ardonagh Group has been working behind the scenes for some time to prepare all our businesses for potential outcomes as well as ensuring our client-facing brands are doing what they can to support clients through coming months, and well into the future.
With a small percentage of the Group’s income generated from within the European Union, we believe that the direct impact on Ardonagh’s portfolio of companies will be limited, importantly, because several additional mitigation strategies have been put in place in anticipation of all eventualities, including a hard or ‘no deal’ Brexit.
Like many UK businesses, the transition may affect the ability of businesses to operate from the UK into other EU states and likewise into the UK from the EU.
We have been working to ensure that alternative arrangements are in place in preparation for 31 December 2020. These include:
- A separate Belgian entity aligned to Lloyd’s of London is now fully operational within Ardonagh Specialty (which encompasses the Price Forbes and Bishopsgate brands) ensuring retail business can continue to be conducted in the EU.
- A separate entity is now fully operational in the Republic of Ireland to continue servicing clients of motorcycle insurance broker Carole Nash.
- A Dutch entity has been established, with final activities underway to make it fully operational, to support the Group’s MGA businesses (including Geo Underwriting) in continuing to write business from the EU. This is on track to be operational for 1 December 2020.
- The Group’s Advisory businesses (including Towergate Insurance Brokers and Towergate Health & Protection) secured membership to the Worldwide Broker Network (WBN) in November 2018, enabling teams across the UK to deal with EU risks via the largest global network of independent brokers specialising in cross-border collaboration on behalf of SME clients.
In terms of the impact to customers and clients, the Group’s portfolio of client-facing brands are all committed to providing the highest levels of service and tailored support to mitigate personal and business risks which may arise as a result of the end of the transition period. Over the coming months, targeted communications will be issued by our trading brands to ensure impacted clients are kept informed of any relevant changes.
Whatever the final transition on 31 December, our people will continue harnessing the Group’s collective scale and breadth of expertise across our near 7000-strong workforce to deliver the best possible solutions to client needs.