International appetite for Luxembourg life insurance products declined significantly last year, according to the annual reports that the two largest unit-linked insurance firms, Lombard International and OneLife, posted this week.
Lombard generated some 3.2 billion euro in new business premiums last year, it said on Monday. That is down 30 percent from the 4.6 billion it has reported for 2022. OneLife, in its annual report filed on Tuesday, spoke about a 24 percent decline, leaving it with “more than 1 billion” in new premium income in 2023.
In their press releases, the companies did not provide an explanation for the declines and did not elaborate further when asked to do so. Lombard merely reported the 2023 numbers and spoke about “challenging market conditions”. OneLife explained its downturn as being “similar to the complete Luxembourg market.”
OneLife, whose primary markets are France, Belgium and Sweden, last year earned 1.026 million euro in net premium income, down 28 percent from 1.430 million in 2022. Insurance claims rose to 831 million compared to 676 million a year earlier, leaving it with a profit of 13.6 million euro compared to 16.9 million a year earlier. The firm also is active in Spain, Portugal, Denmark and Luxembourg.
OneLife wants Belgian office
OneLife also reported that it is in the process of opening a local office in Belgium, one of its historic markets, to better serve its long term partners with a complete offering out of Luxembourg or out of Belgium depending on the clients’ needs and preferences. The firm said it anticipates receiving a green light for opening a Belgian branch from Luxembourg’s insurance supervisor CAA during the first half of this year.
Lombard International, meanwhile, said its 2023 performance was driven by strong contributions from a number of core markets, including France, Sweden, Italy, Portugal and the UK, with assets under management rising to 49.4 billion euro from 46.3 billion at the end of 2022.
“In 2023, Lombard International Group secured a leading share of new business premium volumes, delivering another resilient performance,” said Stuart Parkinson, Group Chief Executive Officer, in the results statement.
Luxembourg’s insurance supervisor earlier this month said it had issued Lombard with a record 1.68 million euro fine for lapses in its anti-money laundering (AML) and counter-terrorism financing (CTF) controls. OneLife last July was presented with a fine for similar reasons, amounting to 580,000 euros.