The U.S. and the U.K. signed an agreement on how to govern insurance and reinsurance activities between the two countries after the latter leaves the European Union in March 2019.

The deal allows insurers and reinsurers from one country to carry out their business in the other without some restrictions that foreign companies typically have to comply with.

The two countries' treasury departments said the deal is consistent with the covered agreement it has with the EU, which removes the need for foreign insurers and reinsurers to post collateral or set up a local base to continue operating. The Treasury noted that the deal "is an important step in maintaining regulatory certainty and market continuity."