Hadrien Bertrand
Economic Advisor
2023 At a glance€37,8 bn
6,1%
As of 31 December, 2023, the insurance sector recorded a premium income of €37,8 bn, -17,5% in life insurance to €19 bn and +9,2% in non-life insurance to €18,8 bn. The amount of assets under management is up 2,2% to € 222,2 bn.
€222,2 bn
2,21%
Luxembourg Insurance Premiums
Europe Insurance 2023 Premiums
International Business: Life Insurance€18,7 bn19%
International life Insurance 2023 premiums
(ACA Members only)
ACA member companies experienced a downturn in international premium collections, totaling €18.7 billion, a 19% decrease from 2022. The share of products with guaranteed returns is increasing, representing 22,9% of invested assets in 2023, compared to 16% in 2022. Meanwhile, the proportion of unit-linked contracts in the investment mix has reduced, accounting for 70.7% of the invested assets as the year closed.
In 2023, the 5 main markets of international life insurance represent 83% of the insurance products distributed under FOS provisions.
Over the last 5 years, the following main developments were observed:
International Non-life Business€15,6 bn15,77%
Premiums
(ACA Members only)
In 2023, the non-life insurance sector saw a 15.8 % increase in premium revenue, showcasing its persistence after the significant gains of 23% in 2021 and 18.9% in 2022. The General Liability and Property segments account for 80% of the direct premiums collected by year-end. Especially, the "Property" insurance category showed a strong increase, culminating in a 33.6% rise in 2023, primarily due to the integration of a new ACA member in 2023, which is a major player in this segment. The growth over the year for 'Property' undeniably reflects a sustained demand in the market.
Reinsurance Business€13 bn
Premiums
The Luxembourg reinsurance market is characterised by a strong concentration. It is noteworthy that proportional reinsurance is dominated by motor vehicle liability and property. The non-proportional reinsurance business shows a significant reliance on property reinsurance. Meanwhile, life reinsurance constitutes a substantial majority over health reinsurance. This distribution reflects the compagnies' strategic priorities and risk appetite within the reinsurance market for the year 2023.
Local Business Life and Non-Life Insurance€1,3 bn14,38%
Premiums
(ACA members only))
In 2023, the total local life insurance market saw a 14.4% decline. The drop was more pronounced for unit-linked products, which decreased by 28.3%, compared to a more modest 2.1% decrease in guaranteed return products. A closer look reveals a 7.1% uptick in the proportion of guaranteed rate products from the previous year, accounting for 57.1% of the year's total premiums.
€1,3 bn5,45%
Premiums
(ACA members only)
The growth in the local non-life insurance sector was robust, achieving a 5.5% increase and accumulating €1.3 billion in direct insurance premiums by December 31, 2023. The sector was led by “Motor” and “Property” insurance products, which saw rises of 4.4% and 6.4%, respectively. The trends in these key areas may be attributed to the broader macro-economic climate, with inflation playing a significant role in driving these changes.
Key Figures à télécharger
E-mail: hadrien.bertrand@aca.lu
Phone : +352 44 21 44 22
Hadrien holds a Master 2 in Finance and started as a Financial Auditor in Luxembourg in 2010. He joined the insurance sector in 2013 and worked in particular in the Finance and Compliance departments of life and non-life insurance companies. Hadrien joined the ACA in 2019 and is in charge of the Finance, Private Equity, SFDR, IFRS 17, Custodian Bank Reporting, Statistics, and Solvency 2 working groups.
