Total non-life insurance premiums rose 210.97% in 2019 Q2
Brexit brought a boost to non-life insurance premium growth in Luxembourg’s insurance sector during Q2 of 2019.
According to figures published by insurance commission office the CAA on Monday, total premiums increased by 53.9%. In life insurance, the growth was 39.39% but in non-life insurance it rose a marked 210.97%. The CAA attributes the latter to the impact of licensing of companies that chose Luxembourg to establish a base following the UK’s decision to leave the European Union.
Overall income grew by 69.55%, an increase which affected both unit-linked products (+11.6%) and those with guaranteed returns (+93.23%). The report summary points out that these figures include a portfolio transfer to Luxembourg of more than €2 billion, with an impact on traditional insurance with guaranteed returns.
Insurers working mainly, if not exclusively on the Luxembourg market, recorded a 6.10% increase in premium income. On the other hand, companies operating abroad in non-life insurance branches excluding marine insurance saw their premium income increase fourfold, with an increase of 315.31%. Marine insurance, for which only first-quarter figures are available, and which is essentially the work of a few large mutuals whose receipts reflect the evolution of claims, increased by 84.70% during this period.
Total technical reserves of life insurers amounted to €191.86 billion at the end of June 2019, up 8.67% compared to the end of June 2018 and 2.74% compared to the end of March 2019. The increase of €5.12 billion in the second quarter of 2019 is attributable to a positive net inflow of some €3.13 billion. The annualised surrender rate is at 6.96% of actuarial liabilities, slightly higher than in the first quarter.