Hadrien Bertrand
Economic Advisor
2021 At a glance€42 bn
24%
As of 31 December, 2021, the insurance sector recorded
a record premium income of €42 bn in both life insurance
(+30% to €27.5 bn) and non-life insurance (+14% to €14.9
bn), even exceeding the excellent figures for 2019 in
some sectors. The amount of assets under management,
meanwhile, was up 9% to € 232 bn.
€232 bn9%
International Business: Life Insurance€25,6 bn34,4%
International life Insurance 2021 premiums
(ACA members only)
Total premiums collected by ACA members internationally reached a record high of €25.6 bn, an increase of +34% compared to 2020 and +10% compared to 2019. The share of products with guaranteed returns is decreasing, representing 20% of invested assets in 2021, compared to 23% in 2020 and 28% in 2019. On the other hand, unit-linked contracts have seen their collection increase and now represent 78% of invested assets as of December 31, 2021.
In 2021, the 5 main markets of international life insurers represented 81% of the insurance products distributed in LPS. Over the last 5 years, the French market has remained the dominant market representing 45% of the global market in 2021. The main developments over the last 5 years are :
The German market is showing great stability, with premium collection in 2021 up slightly to €1.5 bn (+6%).
Following a difficult year in 2019, the Belgian market is performing well this last 2 years, with a 17% increase in 2020 and 32% in 2021.
Despite a strong recovery of the Spanish market in 2020 (+48% to €1.1bn), we observe a sharp decline in 2021 with a drop of 62% to €0.4bn.
The French market reached a record level of premiums collected at €11.7 bn and 45% of market share, an increase of +54% compared to 2020 and +33% compared to 2019.
The Italian market has recovered well in 2021 with an increase of 28% in 2021 and remains the 2nd largest LPS life insurance market in volume.
International Non-life Business€11 bn17%
Premiums
(ACA members only)
International non-life insurance grew by 16,9% in the year 2021, following +5,5% in 2020. This increase is no longer the consequence of the arrival of new of new players following the United Kingdom’s decision to leave the European Union, however those companies continue to contribute to the growth of the international non-life sector. The General Liability and Property branches, representing 81% of direct collected premiums as of 31.12.2021, recorded an increase of 25% compared to the 2020 financial year.
Reinsurance Business€12 bn
Premiums
(Source CAA - Juillet 2021)
The Luxembourg reinsurance market is characterised by a strong concentration of activity on only a few players, with almost half of the underwritten premiums coming from the accepted proportional reinsurance (and a preponderance for Fire and Motor vehicle liability insurance).
Local Business Life and Non Life Insurance€1,9 bn28%
Premiums
(ACA members only))
In 2021, life insurance products with a guaranteed rate of return recorded a 14% decrease compared to 2019, and only represented 46% of life insurance underwritten in Luxembourg. More and more players have decided not to promote this type of product in view of the extremely low interest rates in 2021. Conversely, unit-linked products have increased by 45% in 2021 compared to 2019.
€1,1 bn9%
Premiums
(ACA members only)
Local non-life growth remained solid, with global performance of +3% and €1.1bn in direct insurance premiums as of 3112.2021. The two main branches, “Motor” and “Property” products, recorded increases of 2% and 1%, respectively. This trend could be directly linked with the increase in the number of Luxembourgish residents.
2021 flooding insurance coverage :
Total cost of claims :
€ > 135 ms
9 142 Claims
> 136 000 households covered
E-mail: hadrien.bertrand@aca.lu
Phone : +352 44 21 44 22
Hadrien holds a Master’s 2 degree in Finance and started as a financial auditor in 2010. He joined the insurance sector in Luxembourg in 2013 and worked in particular in the Finance and Compliance Departments. Hadrien began to work for ACA in 2019 and is in charge of the Finance, Private Equity, Custodian Bank Reporting, IFRS 17, Solvency 2, Statistics and Products Working Groups.
