A Luxembourg life insurance company put in forced liquidation

A Luxembourg life insurance company put in forced liquidation


The decision fell on Monday: the dissolution and liquidation of the FWU life insurance company Life Insurance Lux were pronounced by the Luxembourg justice on January 31. The company, based in Howald, was already in the eye of the cyclone for a few years.

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On August 4, 2022, the Insurance Sector Supervisory Authority in Luxembourg, the Insurance Commission (CAA), sent him a fine of 200,000 euros for “deficiencies detected in the surveillance process and requirements in terms of governance” . This sanction was accompanied by a ban on marketing of products, valid for France.

No rescue possible

Last summer, Fwu Life Insurance Lux his informed the CAA “that it no longer met the required solvency capital requirements and minimum required capital”. Under the threat of withdrawal from approval, the company had however benefited from a stay in front of allowing it to save itself.

Last October, the company claimed to have restored its solvency, but the CAA had expressed reservations due to uncertainties linked to tax debts in several countries and the possible termination of contracts with reinsurers. In short, no rescue could be carried out, with regard to the court decision on Monday.

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The latter represents a real tile for many savers. Indeed, no less than 30,000 contracts are affected in France. This decision affects approximately 110,000 Italian savers, which could face long deadlines to recover their money.

According to the CAA, more information will be communicated by the insurance police station in the coming days.

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