Luxembourg insurance company Cardif Lux Vie, which is part of BNP Paribas Group, recently published its financial results for 2021; the company posted revenue of €3.4 billion.
In 2021, Cardif Lux Vie collected €3.4 billion in premiums, representing a substantial increase of 92.9% compared to 2020. Net inflows rose to over €1.6 billion (of which 82.4% in units of account). The company generated net income of €50 million (up 27.7% compared to 2020). Assets under management (AuM) increased to reach €31.9 billion (up 13.9%).
In response to changing market requirements, Cardif Lux Vie has stepped up its transformation and is implementing major plans aimed at offering a new experience to clients and partners as well as speeding up the digitalisation process and enhancing operational efficiency.
In parallel, Cardif Lux Vie has developed a responsible institutional investor policy, specifically by offering SRI-labelled (SRI = socially responsible investment) units of account (UC) within its asset catalogues and by incorporating environmental, social and governance (ESG) criteria into its strategies and investment processes within the General Fund.
Wealth Management
Cardif Lux Vie’s Wealth Management business posted a 98% year-on-year rise in revenue to €3.3 billion, 71% of which is in UC.
In addition to a new service offering, 2021 was characterised in particular by an increased marketing effort; this was supported by concrete action on the digitalisation front, with fully virtual processes for partners in the e-Club platform. Business was also driven by the following developments in units of account: expanded distribution of the Specialised Insurance Fund and the External Funds range, creation of thematic Collective Internal Funds and greater access to private equity.
Local market
Business in the Luxembourg residents market totalled €169.3 million, which included €74.8 million in inflows from retail clients.
In terms of distribution, business generated via brokerage networks grew 13% while collaboration with the BGL BNP Paribas network was strengthened. Ongoing digitalisation of the distribution platform, as well as the full benefits of an automated, integrated operational model, should enable the company to develop new partnership-based opportunities going forward.
"The results achieved by Cardif Lux Vie against a challenging backdrop in 2021 confirm the soundness of its business model. We achieved a successful transformation by developing a rejuvenated, enhanced proposition aimed at our partners and clients. Today, we are fully committed to pursuing this approach of ongoing improvement, creating value for our stakeholders and generating lasting growth. The company will be able to count on drivers such as data utilisation and deployment of the API-sation of the IT system, with a view to strengthening our leading position and making Luxembourg life insurance more accessible across all markets", commented Christian Gibot, CEO of Cardif Lux Vie.
As of 31 December 2021, Cardif Lux Vie employed a total of 318 people.
