Lloyd's of London to create subsidiary in EU due to Brexit

Markets Associated Press

Insurance market Lloyd's of London says it is working on contingency plans to move part of its operations outside Britain following the vote to leave the European Union.

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Lloyd's said Thursday it will provide a detailed update early next year. It is understood to have shortlisted five European capitals for EU operations, which account for 11 percent of its business.

Uncertainty is rife in London because of a lack of clarity on Britain's terms for leaving the EU.

Lloyd's Chairman John Nelson suggested during a speech this year that big businesses were waiting to see what deal the government will strike, but that it was inevitable that there would be consequences for the June 23 vote.

Financial services companies want access to the European Union's single market of 500 million.