Economy & Politics

2019, a “successful year” for insurers

Despite the tornado that hit the south of the country in August, the ACA reports profits that have doubled in one year. Brexit and “the completion of the internationalization of the Luxembourg market” have given the whole sector a boost.

Despite the tornado that hit the south of the country in August, the ACA reports profits that have doubled in one year. Brexit and “the completion of the internationalization of the Luxembourg market” have given the whole sector a boost.

(JFC, with Nadia Di Pillo) – It is the story of a sector that is doing like a charm on the Place. Luxembourg insurance professionals do not hesitate to describe 2019 as a “successful year”. And that’s saying something. Globally, premium income jumped 31.2%, and the balance sheet total of all companies in the sector increased substantially by 25.4% (from 241,000 to 302,200 million euros). In addition, after-tax profit has doubled compared to 2018, from 649 to 1,295 million euros. The 287 companies insurance companies established in Luxembourg employed more than 12,000 people in 2019.

The Brexit helped boost the sector in the Grand Duchy, which saw the establishment in 2019 of eleven “non-life” insurance companies from the United Kingdom. New brands that have only created a handful of new jobs.

The tornado which hit the towns of Pétange and Bascharage on August 9 of last year did not have a negative impact on the overall profitability of “non-life” insurance in Luxembourg. Profitability which remains high, thanks to the automotive sector. In fact, the impact of the tornado on the insurance sector amounts to “several million euros”, reports this Monday without further details the Commissariat aux assurances (CAA), which considers itself “incapable of delivering a exact figure ”.


Aufräumarbeiten Tornado in Niederkerschen

Four months after the destruction on Pétange and Bascharage, Luxembourg insurers continue to compensate individuals and businesses. A total of 4,000 damage management files were opened.


Claude wirion, the outgoing president of the CAA declares that 2019 will go down in history as “the year in which the internationalization of the Luxembourg insurance market was completed”. After the reinsurance sector in the mid-1980s and that of life insurance in the early 1990s, it is the “non-life” insurance sector that turned abroad in 2019 .

“Around 90% of premiums in this sector are now taken out internationally,” says Claude Wirion. Thus, “non-life” insurance taken out abroad now represents 22.7% of total premium income.

From now on, in the area of ​​insurance, the Luxembourg market occupies a place of choice: it is in fact eighth in Europe and 19th in the world in terms of premium income in the life insurance sector. Regarding “non-life” insurance, the Grand Duchy is ninth in Europe and 20th in the world, ie an increase of 24 places in one year.


CoP Commissariat aux assurances: presentation of the report. Photo: Gerry Huberty

Contrary to the recommendations issued by the CSSF for banks and to the recommendations of the European authority for the insurance sector, the insurance commission has chosen to allow the players present in the Grand Duchy to remunerate their shareholders.


Given the covid-19 crisis, fiscal year 2020 looks less favorable. While activity in “non-life” insurance continues, a decline of 33.78% can be observed in life insurance during the first half of 2020. Nevertheless, solvency ratios remain “At a comfortable level”, according to the CAA, which even specifies that “at the end of the first half of the year, they reached a level close to that of the end of 2019”.


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