Cross-border mergers will be allowed under new rules agreed between the two governments

The UK and Gibraltar governments have agreed a deal to allow Part VII transfers between insurers in the UK and the British overseas territory.

This means that insurance companies acting out of Gibraltar will now be able to merge with UK insurers, subject to court and regulatory approval.

Gibraltarian minister for financial services Albert Isola said: “This is superb news for our insurance sector, which has been seeking to be able to carry out this business for many years. We have worked closely with Her Majesty’s Treasury, the Foreign Office and the Financial Services Commission to enable Gibraltar to engage in this business and I am sincerely delighted by the news and grateful to all who have worked with us in this process.”

Gibraltar’s chief minister Fabian Picardo also welcomed the news.

“I am well aware of the very significant effort my government has expended in delivering this result and know that the insurance sector and other areas of the financial services industry will welcome this news with the same enthusiasm as I do,” he said. “This is great news for Gibraltar.”