Luxembourg insurance market
Luxembourg is one of Europe's premier insurance and reinsurance hubs, with a sector dominated by cross-border life insurance for high-net-worth individuals distributed under EU freedom to provide services, and a thriving captive reinsurance sector for which Luxembourg is the EU's largest domicile. According to the Commissariat aux Assurances (CAA) annual report published in July 2026, gross written premiums across life, non-life and reinsurance reached a new record of approximately EUR 70.6 billion in 2025, an 11% increase on 2024, driven by life premiums rising 6.5% to about EUR 33 billion, non-life premiums up 1.5% to nearly EUR 17 billion, and reinsurance premiums climbing 11% to EUR 20.6 billion (+108% over a decade). Sector-wide profitability also hit a record EUR 2.65 billion in 2025, up 21.5% on 2024, with reinsurers posting the strongest profit growth (+40.8% to just over EUR 1 billion). The number of licensed life and non-life insurers fell 5% to 76 in 2025 amid continued market consolidation, while the number of Luxembourg reinsurers, dominated by roughly 200 captive entities, rose 1.5%, broadly returning to 2016 levels; overall the CAA supervised 278 insurance and reinsurance undertakings as of mid-2025. Despite an OECD-leading total insurance penetration of 33% of GDP in 2024, this predominantly reflects cross-border activity rather than domestic demand, and non-life balance sheets have grown fivefold since 2015, boosted by post-Brexit portfolio transfers from the UK.
Country market
Available products
Market overview
Market numbers
Total premiums
EUR 70.6bn
Annual growth
Insurance penetration
33%
Active insurers
76
Population
681,973
Registered vehicles
444,818
Total premiums (EUR bn)
- 202570.6 EUR bn
- 202463.6 EUR bn
- 202156.7 EUR bn
- 202256.5 EUR bn
- 202354.8 EUR bn
- 202034.2 EUR bn
2020 — 34.2 EUR bn
2021 — 56.7 EUR bn
2022 — 56.5 EUR bn
2023 — 54.8 EUR bn
2024 — 63.6 EUR bn
2025 — 70.6 EUR bn
Annual growth (%)
Non-life share / Life share
Non-life share
24.0%Life share
47.0%Insurance penetration (%)
Market data by year
Gross written premium 2024 (EUR bn)
- AIG Europe S.A.4.6 EUR bn
- Swiss Re International SE3.2 EUR bn
- Liberty Mutual Insurance SE3.0 EUR bn
- FM Insurance Europe S.A.1.3 EUR bn
- iptiQ EMEA P&C S.A.0.8 EUR bn
AIG Europe S.A. — 4.6 EUR bn
Swiss Re International SE — 3.2 EUR bn
Liberty Mutual Insurance SE — 3.0 EUR bn
FM Insurance Europe S.A. — 1.3 EUR bn
iptiQ EMEA P&C S.A. — 0.8 EUR bn
Market share 2024
AIG Europe S.A.
15.0%Swiss Re International SE
11.0%Liberty Mutual Insurance SE
10.0%FM Insurance Europe S.A.
4.0%iptiQ EMEA P&C S.A.
3.0%Insurer directory
Active insurers
Insurers currently active in Luxembourg.
AIG Europe S.A.
Luxembourg City, Luxembourg
AIG Europe S.A. is the European subsidiary of American International Group, Inc., headquartered in Luxembourg (RCS B218806, incorporated 17 October 2017). It serves as the hub for AIG operations across Europe, the Middle East and Africa (EMEA), offering a broad range of non-life commercial and personal insurance products to businesses and individuals across the EEA and Switzerland. AIG ranks as the largest non-life insurer by gross written premiums among Luxembourg-headquartered entities.
EUR 4608m
Swiss Re International SE
Luxembourg City, Luxembourg
Swiss Re Europe S.A. is the EEA head office of the Swiss Re Group, one of the world's leading wholesale providers of reinsurance, insurance and other insurance-based risk transfer solutions. Incorporated in Luxembourg on 5 December 1986, it serves as the main European legal entity for the Group's P&C and L&H Reinsurance business units and operates branches across the EU and UK. A second Luxembourg entity, Swiss Re International SE (re-domiciled to Luxembourg on 1 January 2008), serves the Corporate Solutions business, offering specialty and commercial insurance to mid- and large-sized corporations globally.
EUR 3163m
Liberty Mutual Insurance SE
Leudelange, Luxembourg
Liberty Specialty Markets is the European specialty and commercial insurance and reinsurance platform of Liberty Mutual Insurance Group, domiciled in Luxembourg as Liberty Mutual Insurance Europe SE (LMIE). It underwrites more than 20 lines of business across Europe through branches in the UK, France, Germany, Ireland, Italy, the Netherlands, Spain, Switzerland, Belgium, Norway and Sweden, via both company and Lloyd's markets. As at 31 December 2025, Liberty Specialty Markets had a combined Gross Written Premium of $4,801 million.
EUR 3005m
FM Insurance Europe S.A.
Luxembourg City, Luxembourg
FM Insurance Europe S.A. (FMIE) is the Luxembourg-headquartered European subsidiary of FM (formerly FM Global), a leading US mutual commercial property insurer founded in 1835. FMIE is authorised by the Commissariat aux Assurances to underwrite non-life insurance policies across the EEA via EU passporting, with branches in Belgium, France, Germany, Italy, the Netherlands, Spain and Sweden, and on a freedom of services basis in remaining EEA member states. It is also authorised by FINMA to operate in Switzerland and by the UK PRA to operate in the United Kingdom through a UK branch established in November 2024. FM has operated its European headquarters in Luxembourg since 2017 and in March 2025 broke ground on a new science and technology centre in Luxembourg City expected to be completed in 2027.
EUR 1254m
iptiQ EMEA P&C S.A.
Luxembourg City, Luxembourg
iptiQ Life S.A. is a digital B2B2C life and health insurance company incorporated in Luxembourg and powered by Swiss Re. It offers straightforward life, health, and ancillary non-life insurance products through an advanced end-to-end digital platform, enabling partners to market and sell products under their own brands across the EEA via Freedom of Services. As of January 2026 the company has entered run-off, following Swiss Re's strategic withdrawal from the iptiQ business; the former P&C entity (iptiQ EMEA P&C S.A.) was sold to Allianz Direct in 2025.
EUR 839m
Tokio Marine Europe S.A.
Tokio Marine Holdings (Japan)
EUR 638m
Hiscox S.A.
Hiscox Ltd (Bermuda/United Kingdom)
EUR 614m
Foyer Assurances S.A.
Leudelange, Luxembourg
Foyer Assurances S.A. is Luxembourg's leading private insurer, founded in 1922, offering a comprehensive range of life, non-life, health, motor, home, savings and professional insurance products to individuals and businesses, with presence in over ten European countries.
EUR 600m
Intact Insurance (Europe) S.A. (ex-RSA Luxembourg S.A.)
Intact Financial Corporation (Canada)
EUR 469m
SI Insurance (Europe) S.A.
Sompo International (Japan/Bermuda)
EUR 466m
Market notes
Important news
Aug 4, 2026
Italian Insurer Revo Insurance Agrees to Acquire Luxembourg's Eurocaution
Italian insurer Revo Insurance announced its agreement to acquire Eurocaution, a Luxembourg-based intermediary specialised in surety and guarantee insurance, marking Revo's first inorganic growth move outside its original targeted markets. Completion is expected between late 2026 and Q1 2027.
Why it matters
Signals continued foreign investor interest in Luxembourg's specialised insurance intermediation niches, and Revo Insurance's first expansion into the Luxembourg market.
Jan 28, 2026
CAA Publishes Circular Letter 26/1 Overhauling Unit-Linked Investment Rules
The CAA published Circular Letter 26/1 on 28 January 2026 (effective 1 February 2026), replacing the decade-old Circular 15/3. It allows direct investment in structured products, harmonises Collective and Dedicated Internal Fund rules, introduces a level-playing-field principle for cross-border contracts, and imposes 'Value for Money' pricing transparency obligations.
Why it matters
The most significant reform of Luxembourg unit-linked life insurance investment rules since 2015, aimed at preserving competitiveness against jurisdictions such as Liechtenstein and Singapore while reinforcing subscriber protection.
Dec 5, 2025
Helvetia-Baloise Merger Finalised, Reshaping Baloise Assurances Luxembourg's Parent Group
Helvetia Holding SA and Baloise Holding SA finalised their merger of equals to form Helvetia Baloise Holding SA on 5 December 2025, creating the second-largest Swiss insurer and a leading European group present in Luxembourg. Baloise's Swiss insurance subsidiaries were formally merged into Helvetia entities on 1 July 2026.
Why it matters
Places the Luxembourg tied-agent and general-agency distribution network of a major local insurer under a newly enlarged pan-European group, with integration and rebranding continuing into 2026.
Jul 23, 2025
CAA Withdraws Licence of Brokerage Firm Condor Courtiers & Conseillers
On 23 July 2025 the CAA withdrew the licence of Condor Courtiers & Conseillers S.à r.l. for breaches of Luxembourg brokerage rules, including an unlawful pyramid-style distribution and remuneration scheme, unlicensed sub-delegation of broking activities to a foreign entity, and product governance failures. The withdrawal took effect on 15 September 2025.
Why it matters
Demonstrates the CAA's willingness to withdraw broker licences for serious conduct and governance failures, reinforcing consumer protection standards in the intermediation market.
Regulation
Regulation
CAA
Commissariat aux Assurances
The CAA is the public institution responsible for the prudential supervision and regulation of all insurance and reinsurance undertakings, pension funds under its supervision, insurance and reinsurance intermediaries, and professionals of the insurance sector established or operating in Luxembourg. Governed by the Law of 7 December 2015 and operating under the authority of the Minister of Finance, its primary objective is to protect policyholders and beneficiaries, promote market transparency, and ensure compliance with Luxembourg and EU insurance law including Solvency II and the Insurance Distribution Directive. As of mid-2025 the CAA supervised 278 insurance and reinsurance undertakings and is also the competent authority for DORA (Digital Operational Resilience Act) compliance in the insurance sector.
https://www.caa.luACA
Association des Compagnies d'Assurances et de Reassurances
The ACA, founded in 1956, is the professional association representing all insurers and reinsurers established in Luxembourg. As at August 2026 it has 138 members, including 76 insurers and reinsurers. It publishes annual key market statistics, represents the industry in national and European regulatory discussions, manages the sector collective bargaining agreement, and operates the Luxembourg Green Card Bureau and Motor Guarantee Fund secretariat.
https://www.aca.luBL
Bureau Luxembourgeois des Assureurs contre les Accidents d'Automobile
The BL is the Luxembourg national Green Card Bureau, grouping all insurers authorised to write motor third-party liability insurance in Luxembourg. It facilitates entry of Luxembourg-registered vehicles abroad under the international Green Card system and compensates victims of accidents caused in Luxembourg by foreign-registered vehicles, recovering costs from the foreign insurer or its national bureau.
https://www.bureau-luxembourgeois.luFGA
Fonds de Garantie Automobile
The FGA, governed by the Law of 16 April 2003, brings together all insurers authorised to write motor third-party liability insurance in Luxembourg. Its mission is to compensate victims of road accidents in Luxembourg caused by uninsured, unidentified, or insolvent vehicles, and to act as a compensation body for Luxembourg residents injured in EEA road accidents abroad when the foreign insurer fails to respond within three months or has not appointed a local representative.
https://www.fga.luFIAA
Fonds d'Insolvabilite en Assurance Automobile
The FIAA is a public institution created by the Law of 29 March 2024 transposing EU Directive 2021/2118. It compensates injured parties residing in Luxembourg for damage caused by vehicles insured by a Luxembourg-law or EU insurance undertaking subject to insolvency or winding-up proceedings. Membership is compulsory for all Luxembourg-law insurers authorised in the motor vehicle liability class. It is financed by ex-ante contributions and, if needed, extraordinary ex-post contributions from members, with a state-backed credit line guarantee of up to EUR 300 million.
https://www.fiaa.luKey legislation
Key legislation
Law of 7 December 2015 on the insurance sector, as amended (consolidated to 14 February 2025)
Insurance Sector Law
Primary framework law transposing Solvency II Directive (2009/138/EC) and the Insurance Distribution Directive (2016/97/EU). Establishes the CAA as the sole supervisory authority for all insurance and reinsurance undertakings, intermediaries, pension funds, and professionals of the insurance sector. Sets requirements for authorisation, governance, solvency capital, technical provisions, asset deposits with CAA-approved custodian banks, AML/CFT compliance, insurance secrecy obligations, and cross-border activities under freedom of establishment and freedom to provide services.
Law of 27 July 1997 on the insurance contract, as amended
Insurance Contract Law
Governs the legal relationship between insurers and policyholders in Luxembourg. Sets out rules on contract formation, pre-contractual disclosure, duty of good faith, premium payment, claims notification, insurer duty to pay within 30 days of settlement, policy cancellation, and choice of applicable law for cross-border contracts. Insurance contracts covering Luxembourg risks concluded by unauthorised insurers are null and void.
Law of 16 April 2003 on compulsory civil liability insurance for motor vehicles, as amended (coordinated version 6 April 2024)
Compulsory Motor Third-Party Liability Insurance Law
Makes MTPL insurance compulsory for all vehicles registered or habitually stationed in Luxembourg. Establishes the Bureau Luxembourgeois des Assureurs (BL) and the Fonds de Garantie Automobile (FGA). Sets minimum coverage requirements and procedures for compensating victims involving uninsured, unidentified, or foreign-registered vehicles. Amended by the Law of 29 March 2024 to introduce the Fonds d'Insolvabilite en Assurance Automobile (FIAA) transposing EU Directive 2021/2118.
Law of 10 August 2018 transposing EU Directive 2016/97 on insurance distribution, amending the Law of 7 December 2015
Insurance Distribution Law
Transposes the EU Insurance Distribution Directive into Luxembourg law by amending the Law of 7 December 2015. Introduces conduct-of-business obligations for all insurance distributors including product oversight and governance, needs analysis, suitability and appropriateness assessments for insurance-based investment products, remuneration transparency, conflicts of interest management, and minimum professional training requirements for intermediaries and insurance staff.
Law of 29 March 2024 creating the Fonds d'Insolvabilite en Assurance Automobile and transposing EU Directive 2021/2118
Motor Insurance Insolvency Fund Law
Creates the FIAA as a public compensation body for injured parties in Luxembourg where the liable motor insurer, licensed in Luxembourg or another EU member state, becomes insolvent or is subject to winding-up proceedings. Mandates compulsory membership for all Luxembourg-law motor liability insurers and establishes a state-backed guarantee of up to EUR 300 million for FIAA credit lines.
EU cross-border access
EU cross-border insurers
Cardif S.A. (succursale Luxembourg)
Freedom of Establishment
Home country: France
Supervisor: ACPR (France)
Foreign life insurance branch authorised in Luxembourg by the CAA; mainly backed by Luxembourg bank contracts (BNP Paribas)
AG Insurance S.A.
Freedom of Services
Home country: Belgium
Supervisor: FSMA (Belgium)
Notified to the CAA for FoS; leading Belgian insurer active on the Luxembourg market via FoS
Allianz Versicherungs-AG
Freedom of Services
Home country: Germany
Supervisor: BaFin (Germany)
Notified to the CAA for FoS non-life and life; Allianz group active in Luxembourg for individuals and professionals
AXA France IARD S.A.
Freedom of Services
Home country: France
Supervisor: ACPR (France)
Notified to the CAA for FoS non-life; separate entity from AXA Assurances Luxembourg S.A.
Ethias S.A.
Freedom of Services
Home country: Belgium
Supervisor: FSMA (Belgium)
Belgian insurer notified to the CAA for FoS non-life in Luxembourg
Belfius Insurance S.A.
Freedom of Services
Home country: Belgium
Supervisor: FSMA (Belgium)
Belgian insurer notified to the CAA for FoS life and non-life in Luxembourg
Ergo Versicherung AG
Freedom of Services
Home country: Germany
Supervisor: BaFin (Germany)
Notified to the CAA for FoS non-life in Luxembourg
Distribution channels
Share by channel- 55%Insurance Brokers
- Aon Luxembourg
- Marsh Luxembourg
- Willis Towers Watson Luxembourg
- LIB (Luxembourg Insurance Broker)
- Finaxy Life
- 25%Bancassurance
- BGL BNP Paribas
- Spuerkeess (BCEE)
- Banque de Luxembourg
- CALI Europe (Crédit Agricole Life Insurance)
- 10%Tied Agents / General Agencies
- La Luxembourgeoise (Agences)
- Baloise Assurances Luxembourg (Helvetia Baloise group)
- DKV Luxembourg agencies
- 5%Direct SalesInsurer direct
- Foyer Assurances
- Allianz Luxembourg
- 5%Digital / Other Distribution Forms
- Utmost Luxembourg (e-platforms)
- Various insurtech / affinity distributors
Some companies appear in more than one channel.
Consumer rights
How to file a complaint- 1
File a written complaint directly with the insurer or insurance intermediary. The professional must acknowledge receipt within 10 business days and provide a final written response within a maximum of 2 months.
- 2
If no satisfactory response is received within 90 days, submit a written out-of-court resolution request to the CAA (Commissariat aux Assurances). Request must be made within one year of filing the initial complaint. CAA conclusions are non-binding.
- 3
Alternatively, contact the Luxembourg Insurance Ombudsman (ACA / ULC joint body) for mediation, provided no legal proceedings are underway. If no resolution, the parties may refer the matter to the courts or to FIN-NET for cross-border cases.
EU cross-border access
EU cross-border access
Luxembourg is a leading hub for cross-border insurance in Europe, particularly for life insurance sold under Freedom to Provide Services (LPS) to policyholders in other EU/EEA states. Insurers use the EU 'passport' under Solvency II to operate in other member states either by opening branches (freedom of establishment) or by selling directly without a local presence (freedom of services). The CAA, as home supervisor, is the primary prudential authority for all Luxembourg-licensed insurers operating abroad.
Directive 2009/138/CE (Solvabilité II), transposée par la loi modifiée du 7 décembre 2015 sur le secteur des assurances ; Directive (UE) 2016/97 sur la distribution d'assurances (transposée par la loi du 10 août 2018)
freedom of establishment
A Luxembourg-licensed insurer may establish a permanent branch or subsidiary in another EU/EEA member state. The CAA notifies the host-country regulator. The branch is supervised prudentially by the CAA but must comply with certain conduct-of-business rules of the host state.
freedom of services
A Luxembourg-licensed insurer may sell insurance products directly to clients in other EU/EEA states without establishing a local presence, on the basis of a simple CAA notification to the host-country regulator. This mode accounts for the vast majority of Luxembourg life insurance business, historically dominated by French, Belgian, Italian and other continental European clienteles.
Market history
Market history
1984–1993
Reinsurance Hub and Early Internationalisation
Luxembourg became one of the first countries to offer a modern, flexible prudential framework for captive reinsurance from 1984, attracting hundreds of reinsurance companies over the following decades. The adoption of the EU Single Market directives (effective 1 July 1994) introduced the LPS framework, enabling life insurers to serve European clients from Luxembourg without local branches.
1994–2007
Life Insurance Expansion under LPS
From the mid-1990s, major European groups (French, German, Belgian) established Luxembourg life insurance subsidiaries to distribute unit-linked wealth management products across the EU under LPS. The 'triangle of security' policyholder protection model became a key competitive differentiator during this period of rapid cross-border expansion.
2008–2018
Solvency II Transposition and Non-Life Growth
The law of 7 December 2015 transposed Solvency II, reinforcing the CAA's supervisory powers and establishing a modern risk-based prudential regime. Luxembourg's life insurance assets under management grew substantially over the decade. The Insurance Distribution Directive was transposed via the law of 10 August 2018.
2019–2024
Brexit Relocation Wave and Market Rebound
Multiple UK-based non-life insurers relocated to Luxembourg following Brexit, expanding non-life premiums with the large majority of business coming from international clients. Total sector balance sheets reached roughly EUR 380 billion and employment reached 14,809 people by end-2024, with 2024 gross written premiums reaching EUR 63.6bn, up 16.1% year-on-year, driven by a strong rebound in life insurance.
2025–2026
Record Premiums, Regulatory Modernisation, and Sector Consolidation
The market reached approximately EUR 70.6bn in gross written premiums in 2025 (+11% year-on-year), with unit-linked products representing close to 80% of life technical provisions. The period was marked by the FWU Life Insurance Lux liquidation, DORA's entry into force, a major overhaul of unit-linked investment rules via CAA Circular 26/1 (February 2026), and cross-border group consolidation including the Helvetia-Baloise merger affecting Baloise Assurances Luxembourg.
Glossary
Glossary
fr
Commissariat aux Assurances (CAA)
The independent Luxembourg public authority responsible for prudential supervision of all insurance, reinsurance undertakings, pension funds, and insurance intermediaries operating in or from Luxembourg.
fr
Libre prestation de services (LPS)
EU-law right allowing a Luxembourg-licensed insurer to sell insurance products across the EEA without opening a local branch, following a simple CAA notification to the host-state regulator.
fr
Libre établissement
EU-law right allowing an insurer licensed in one member state to set up a permanent branch or subsidiary in another member state and conduct business there on an ongoing basis.
fr
Triangle de sécurité
Luxembourg-specific policyholder protection structure in which policyholder assets are held in segregated accounts at a CAA-approved custodian bank under a tripartite convention between insurer, bank, and CAA.
fr
Fonds d'assurance spécialisé (FAS)
A bespoke internal investment vehicle within a Luxembourg unit-linked life policy, allowing sophisticated investors to define their own investment strategy and asset universe.
fr
Fonds interne dédié (FID)
An internal investment fund within a Luxembourg unit-linked contract, managed by a single appointed manager and held at a single custodian bank, tailored to one policyholder.
fr
Fonds interne collectif (FIC)
A pooled internal investment fund within a unit-linked contract, shared by several policyholders under a predefined investment policy; categories A-D now benefit from DIF-like operational flexibility under Circular 26/1.
fr
Assurance responsabilité civile (RC)
Insurance covering the insured's legal liability to third parties for bodily injury or property damage caused by an accident or negligence.
Market notes
FAQ
Market notes
Sources
Last updated: Sep 25, 2026
- 01Commissariat aux Assurances (CAA)
Official Luxembourg insurance regulator; annual reports, statistics, sanctions register, and consumer information.
- 02CAA Rapport annuel 2025-2026
Latest official CAA annual report covering 2025 market data, sanctions, and Circular Letter 26/1.
- 03CAA Rapport annuel 2024-2025 et Annexes
Official CAA annual report and statistical annexes covering 2024 market data, distribution channels, and FWU liquidation.
- 04ACA – Association des compagnies d'assurances et de réassurances
Luxembourg insurance industry association; key market figures, member list, and Insurance Ombudsman.
- 05Legilux – Journal Officiel du Grand-Duché de Luxembourg
Official legislative journal; source for all Luxembourg insurance laws and regulations.
- 06Loi du 7 décembre 2015 sur le secteur des assurances (coordonnée au 14 février 2025)
Consolidated Insurance Sector Law including all amendments through February 2025.
- 07CAA Sanctions and Administrative Measures Register
Official register of CAA administrative sanctions, fines, and licence withdrawals against insurers and intermediaries.
- 08CAA Circular Letter 26/1
Official circular letter reforming unit-linked life insurance investment rules, effective 1 February 2026.