The grand duchy’s insurance sector posted a banner year, with much of the uptick due to companies moving operations here ahead of Brexit, according to Luxembourg’s insurance regulator.
The Supervisory Authority for the Insurance Sector (Commissariat aux assurances or CAA) said that direct premiums paid for non-life policies during the fourth quarter of 2019 were 143% higher than during the same period in 2018. Life insurance premiums were up by 7%.
Non-life premiums for all of 2019 shot up by 186% compared to the previous year, and life insurance premiums grew by 19%.
“Despite the relocation costs of companies with newly established operations [in Luxembourg] following Brexit,” net profits in the sector rose by 37% from €331.5m in fourth quarter of 2018 to €452.7m in the fourth quarter of 2019, the CAA stated.
Technical provisions for life insurers stood at €203.3bn as of 31 December 2019, an increase of 15% compared to 31 December 2018.
The numbers did not include Luxembourg subsidiaries of companies regulated by authorities in another EU member state, reinsurers, and fourth quarter figures for maritime insurers.