Luxembourg saw the arrival of 11 new global insurance and reinsurance companies in 2018, which decided to move their European headquarters to the country ahead of the UK’s planned departure from the European Union (EU) in March 2019.
Most of these companies have already started operating with their new licences, and have contributed to growth in Luxembourg’s non-life sector of more than 23% over the first nine months of 2018, according to a report by Luxembourg for Finance (LFF).
LFF, which is the Agency for the Development of the Luxembourg Financial Centre, claimed that the addition of these new companies will bolster Luxembourg’s status as a key EU hub for cross-border life insurance and reinsurance.
Re/insurers to select Luxembourg as their post-Brexit headquarters include AIG, Liberty Mutual, Hiscox, Sompo and Tokio Marine.
Luxembourg once again ranked among the top three EU financial centres in 2018, according to the LFF, and its regulators granted 80 new licences for banks, management companies, alternative asset managers, insurers and investment firms over the year.
To date, the Brexit relocation plans of 47 financial institutions involving Luxembourg have been made public, of which half are asset managers and the other half are a mix of banks, insurers and payment service providers.
“Luxembourg’s proposition to the global financial sector is stronger than ever,” said Nicolas Mackel, Chief Executive Officer (CEO) of Luxembourg for Finance. “We are known as a cross border focused centre and this status has only been underscored by Brexit.”
“Our offer is also constantly evolving to meet the future needs of finance, which means continuing to curate a modern, ambitious and outward looking financial centre, that provides clear development plans and practical support,” he continued.
“The progress we have made over the last year in sustainable finance, digitalisation, and in deepening relationships with global brands and major economies like China is testament to that approach.”
A total of 136 banks from 28 countries currently rely on Luxembourg as their European or international hub, many of which are attracted by the country’s consistent AAA credit rating and long-term stability.
Luxembourg’s status as a global location for funds was also reinforced last year, as the country’s fund industry reached assets under management of €4.19 trillion (USD $4.76 trillion), representing a year-on-year increase of 1.37%.
Looking forward, the LFF claimed that the country plans to further strengthen its position as a global financial hub by deepening its relationship with China, enhancing its digital initiatives, and developing its sustainable finance ecosystem.
