A report released by the Luxembourg Insurance Commission on Friday has shown that the national insurance industry continued its downward trend already observed throughout 2015 in the first quarter of this year, with premiums found to have declined by 2.01% compared to the same period of last year.
As was the case in 2015, this shift masks divergent trends across sectors: whilst the collection of life branches decreased 3.73% compared to the first quarter of 2015, non-life insurance premiums increased by 10.98% compared to the corresponding quarter of the previous year.
In life insurance the quarterly decline of 3.73% affects all types of products: products for guaranteed returns premiums were down 2.42% from the corresponding quarter of the previous year, but this decline contrasts with those above 30% recorded during the first four quarters of 2015. The decrease of 4.82% for life products in unit also contrasts with the increases of the previous year where all quarters experienced double-digit increases.
The total technical reserves of life insurance amounted to €147.55 billion at the end of March 2016, up 0.99% from the end of March 2015, but down 0.90% compared to late December 2015. This near stagnation is entirely due, according to the Commission, to the poor performance of stock markets and not to the €3.40 billion in redemptions and other benefits for the first quarter of 216 which correspond to an annual redemption rate of 9.17% with regard to technical provisions. This rate is equal to 9.22% of Q4 2015.
Non-life insurance grew by 10.98% in the first three months of 2016. Luxembourg institutions working primarily, if not exclusively on the domestic market, recorded a growth of 7.56%. Wtih an increase of 14.22% on their collecion, companies oeprating abroad in non-life insurance branches, outside of marine insurance, continued their trajectory from previous quarters.
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