European statistics on life insurance

Luxembourg insurers capture 3% of the life insurance premiums paid in Europe

In recent years, the specialised press has trumpeted the existence of life insurance policies marketed by Luxembourg companies. What does Luxembourg represent in this sector? In which countries are these policies marketed and which type of policy are they?

Life insurance receipts in Luxembourg on the rise

With life insurance premiums in 20181 of EUR 23.3 billion, stable compared to 2017, and reserves at 176 billion2 (+2.02%), the life insurance sector represents a significant part of the Luxembourg financial sector, even if we are still far below the EUR 363,4billion managed in private banks and the EUR 4,064 billion invested in asset management funds. Receipts of life insurance premiums are experiencing fairly significant annual changes and, since 2009, have increased from EUR 14.65 billion in 2011 to EUR 23.76 billion in 2014, a record year to date.

Life insurance receipts in freedom to provide international services from Luxembourg (source ACA - in EUR billions).

European sector in good form

The life insurance policies entered into by residents of Luxembourg represent 0.22%4 of the EUR 709.97 billion of gross premiums in Europe5 for 2017. In contrast, the volume registered with Luxembourg companies by non-residents amounts to 21.73 billion, or 3% of the receipts in European life insurance.

Market share of gross life premiums issued in the EEA (domestic market)

The figures available for 2018 remarkably show that France and Italy (with market shares of 34.64% and 26.22% respectively) account for 60.86% of the receipts of Luxembourg insurance companies. If we include Germany, Belgium and the United Kingdom, the figure totals 77.87%, which is extremely concentrated.

Geographic breakdown of life insurance premium income 2018

A point to note, life insurance receipts in 2018 were invested nearly 64.5% in unit linked products, the investment risk for which is borne solely by the subscriber. 
We can only be pleased with the good health of the life insurance sector, which employed 2,692 people at the end of 2018 and reported after-tax results of EUR 307 million (+36.5% compared to 2017)6.

 


1 Total receipts in Luxembourg’s life insurance sector (national and international) Life, Non-Life   Source: communicated by the ACA. Unless otherwise stated, the figures quoted are those at 31 December 2018.
2 Figures CAA 2018.
3 Figures CSSF 2017.
4 For 0.12% of the population of the European Union (according to 2018 Eurostat figures)
5 Source Insurance Europe: Direct gross life premiums, written on total market - within the EEA.
6 Figures CAA 2018 .

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