August 5, 2019 Insurance is starting to benefit from Brexit

The promising future of the non-life insurance sector in Luxembourg, predicted over the past two years by the Insurance Commissioner,, is confirmed. A revival due to Brexit. Last year, twelve non-life insurers, ten of whom came from the United Kingdom, chose to establish their business centre in the Grand Duchy.

"2018 was still a year of transition in which we had a modest transition of around 3% of cash receipts. This year it will be different because Brexit companies have only started subscribing for most of them on 1 January this year. In the first quarter of the year, this was the case in the first quarter of which saw a tripling of non-life insurance cashreceipts," comments Claude Wirion, Director of the Police Station. The sum of balance sheets and the receipt of non-life bonuses rose by 13.8% and 22.3% over one year, to 15 billion and 5 billion euros respectively.

"More lenient disaster"

While volumes remain much higher in life insurance, growth was more modest last year: 2.2% for the sum of balance sheets (183 billion euros) and 2.5% in cash receipts (24 billion euros). After three consecutive years of growth, reinsurance saw its cash flow fall by 2.5% last year to 10 billion euros. Behind a more lenient "disaster rate" last year at the global level that is reflected in Luxembourg's results, the "high concentration of activity on only a few players" affects the results.
In the end, the sector-wide after-tax results fell by 16.1% in 2018 to 647 million euros. "Profits have fallen slightly but in all of this there are unique effects of companies that started a major business with losses in the early years, which is quite normal. There is no reason to be worried, today's losses will hopefully be tomorrow's profits," explains Claude Wirion. In terms of employment, the sector continues to create jobs, with 8,582 units registered last year (up 3.4%), for 295 companies registered at the end of June 2019 (up 1 from January 2018).