Hiscox has said it is considering setting up a new EU-based insurance company as trading arrangements become clearer following the UK decision to leave the EU.

Following the release of the half year results this morning the Lloyd’s insurer said it was preparing for a range of outcomes, depending on whether the UK remained in the single market or needed to navigate new trading arrangements.

Excluding the UK, Hiscox employs 355 people in Europe and generates gross written premiums of £260 million in the EU.

The insurer said the speed of change in the UK political landscape over the last few weeks had been dizzying, but added it saw the demand for insurance undiminished and its ability to meet clients’ needs unimpaired.

In a statement today the insurer added: “There is a great deal of uncertainty about what is going to happen now the UK has voted to leave the European Union.

“We believe this represents a structural rather than strategic challenge for the Group. Hiscox has always had an international view and Hiscox Europe is well-established. Traditionally, market dislocation has provided opportunity for those who are fleet of foot.

“We are a global business, with carriers in key markets that can take advantage of the changing environment. In time this may give us opportunities, for example supporting small MGAs by giving their clients access to the London Market.

“We may have to restructure to face European competition but we have time, resource and appetite for the change.”