Luxembourg Insurance Premiums Rise 16% in 2017 Q2

Luxembourg’s Commissariat aux assurances, the insurance regultor, has confirmed that, after a promising start to the year, growth in the Luxembourg insurance market activity increased in the second quarter of 2017: with all insurance sectors combined, premiums increased by 26.94% compared to the same period last year.

Over the first six months of fiscal year 2017, total inflows increased by 16.28%, with premiums up by 17.81% in life assurance and by 6.98% in non-life insurance sectors.

In life assurance, the half-yearly growth of 17.81% on premiums is attributable exclusively to unit-linked products whose premiums increased by 41.70%, while the inflow of guaranteed-return products fell by 21.97%. These movements confirm the trends observed during the first three months of the year and reflect the persistent low level of remuneration that can be offered by guaranteed-rate products and the willingness of life insurers to reorient their clients towards Unit-linked products.

Total life assurance company reserves amounted to €166.24 billion at the end of June 2017, an increase of 10.45% compared to the end of June 2016 and 1.68% on March 2017. The increase of €2.74 billion in the second quarter of 2017 is attributable to positive net inflows of about €0.25 billion, with new premiums only slightly exceeding claims. The claims rate returned to a level of 8.34% of actuarial liabilities after a peak in the first quarter.

Non-life insurance rose by 6.98% in the first six months of 2017. Insurers working mainly, if not exclusively, on the Luxembourg market, recorded an increase in their inflow of 3.43%. Firms operating abroad in the non-life insurance sectors (excluding marine insurance) saw their premium receipts increase by 11.83%. Marine insurance, for which only first-quarter figures are available and which is essentially the result of a few large mutuals whose receipts reflects the evolution of claims, fell by 2.68% during this period.