QBE may need to alter the way it sources £500 million ($912.19 million) of insurance and reinsurance premium from the European Union after the UK voted last week to leave the bloc.

The premiums are sourced via UK-regulated entities under “passporting” rules, which give insurers the right to provide services throughout the EU.

“Should EU passporting rules not be preserved, QBE will be required to renew this business into newly established licensed EU entities,” the insurer said today in a statement.

Britain has two years to negotiate its exit from the EU.

“This period provides ample time for any requisite administrative transition and to ensure our service commitments to QBE’s European customers are uninterrupted,” QBE says.

“Thus our ability to source business from EU member countries remains unchanged.”

S&P Global Ratings said today that its A-/Positive ratings and outlook on the QBE Insurance Group and the A+ rating for QBE’s core operating entities have not been affected by the Brexit decision.

“We expect the impact of market-related movements to be manageable as QBE maintains a high-quality fixed interest investment portfolio, very strong capital adequacy according to our measures, and excellent liquidity.”

Meanwhile, Lloyd’s Australia says its international trading rights are not affected by the Brexit vote, and a contingency plan to ensure continued access to European markets has been put into place.

“Lloyd’s will be working closely with the UK Government, European governments, regulators and the European Union on this transition,” Lloyd’s General Representative in Australia Chris Mackinnon said.

“Given Lloyd’s position at the heart of the global insurance and reinsurance sector, and the financial strength, expertise, and innovation of the Lloyd’s market and its participants, I have every confidence that we will continue to flourish.”

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