Shares in QBE fell today after the insurance giant said it may have to revise its approach to business in Europe following the Brexit vote in the UK.
A short time ago, they were down 6.75% to $10.23. They have slipped from a high of $11.89 last week.
QBE says the referendum outcome may require a revised approach to GBP500 million ($A904 million) of insurance and reinsurance premiums that it sources from European Union (EU) member countries.
The premiums are written via branches of UK entities which are allowed to operate in Europe under current EU rules.
“Should EU passporting rules not be preserved, QBE will be required to renew this business into newly established licensed EU entities,” the company says.
However, QBE notes that the exit transition timetable is expected to take a minimum of two years — ample time to ensure commitments to European customers are uninterrupted.
“Thus our ability to source business from EU member countries remains unchanged,” QBE says.
“Accordingly, QBE does not anticipate any material impact on our day-to-day insurance operations as a result of the UK’s decision to leave the EU.”
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