>> Lloyd's of London is being lured to Brussels. The world's largest speciality insurance market announcing it'll make the city its post-Brexit European hub. That's less than 24 hours after Theresa May formally triggered the divorce from the EU. The announcement surprising some, but as Reuters' Caroline Kern explains, the move does make sense,
>> I was spoke to John Nelson, the Chairman, this morning. He says the reason is strong regulatory framework, it's at the heart of the European Union and that's another advantage as well. It's a very unusual setup, Lloyd's. It's a market. It's not an insurance company. It houses 80 different insurance companies within its building, and it's said Brussels provided the regulation that they were comfortable with.
And also stronger access to good talent. They were choosing, the last two was down to Brussels and Luxembourg. He didn't make any comments on Luxembourg, but it is a smaller place.>> Lloyd's is expected to move fewer than 100 people, about a sixth of its London head count, but some now fear an exodus from the UK.
Goldman Sachs and JP Morgan amongst those already warning a major shift from London to the EU is inevitable if Britain loses access to the single market.>> I think we will see others follow Lloyd's to Brussels. Where Lloyd's goes, it attracts an ecosystem around it. And it's right in the heart of the city of London, at the moment surrounded by insurance offices.
And so I think we might see a bit of the same in Brussels.>> For employees, the draws include much lower rent than in London, high-speed rail services that reach the UK capital in less than two hours, and good food. The UK government is likely to try to incentivize companies to remain on British soil.
But with the EU already offering bonuses and fast-track regulation of its own, one way or another, UK-based financial firms are likely to gain rather than lose in the end.