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Monday, 17 July 2017 12:23

Insurance and Reinsurance Undertakings Decline Whilst Employment Increases

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As in previous years, the total number of insurance and reinsurance undertakings established in Luxembourg continued to decline over the past year.

A recent report from the Commisariat aux Assurances has revealed that the total number of insurance and reinsurance undertakings in the Grand Duchy declined slowly to 299 units at the end of June 2017.

In keeping with previous years, the total number of insurance and reinsurance undertakings has continued to decline. In reinsurance, the number of operators decreased by ten units. These overall variations effectively mask larger movements, with new market entrants partially offsetting departures. For example, a life insurer, two non-life insurers and six reinsurers under Luxembourg law were granted an authorisation between 1 January 2016 and 30 June 2017, while during this time four life insurance companies and sixteen reinsurance companies have withdrawn from the market.

Between 1 January 2016 and 30 June 2017 and in direct insurance, the number of Luxembourg companies decreased by one unit for that period as well as the number of foreign branches established in Luxembourg.

That being said, employment in the insurance and reinsurance sector continued to grow by 2% to 6,613 units (+130 units) at the end of 2016. Unlike in previous years, the main contribution to growth came from the number of employees in the country, which amounted to 3,897 units and rose by 2.50%. Employment in foreign branches of Luxembourg companies increased by only 1.29%.

Moreover, profit after tax increased from €1.241 billion in 2015 to €1.808 billion in 2016 (+ 45.7%).

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