Luxembourg licensed five new reinsurance companies in 2023, of which the majority are considered captives.
There were also five reinsurance company closures in 2023, meaning the total number of reinsurance companies domiciled in Luxembourg in 2023 remained the same as in 2022 at 195.
Luxembourg’s total gross written premium for 2022 was €12bn, and its assets under management (AuM) was €25.6bn. The 2023 figure will be available later this year.
Luxembourg is the largest captive domicile in the European Union, well known for its equalisation provision which makes it a popular destination for reinsurance captives.
The regulator does not publicly distinguish between reinsurance captives and reinsurance companies, but the vast majority of its 195 reinsurance licences are considered captives.
The potential introduction of PCCs in Luxembourg has been debated in recent years, but one barrier to progress is figuring out how it would work in tandem with the equalisation provision.
Valerie Scheepers, head of the non-life and reinsurance department at the Commissariat aux Assurances, previously told Captive Intelligence that PCCs are “clearly on the radar” and the regulator is open to developing new regulation to the extent that there is demand for it.
Captive Intelligence published an article in December, detailing that Luxembourg’s established and attractive equalisation provision, in addition to its long-standing reputation, are expected to maintain the jurisdiction’s popularity as an EU domicile choice for reinsurance captives, despite increasing competition from new European domiciles such as France and Italy.