Belgium -

Results – March 2024

Find out the results of the insurance market in March 2024.

Annual insurance results at Belfius

At Belfius Insurance, non-life (excluding Health) premium income at group level increased from 771 million euros to 822 million euros in 2023: +7.8% in the bancassurance channel (including Belfius Direct Insurance), +8% at DVV.

Total Life reserves increased from 13.7 billion to 14.2 billion euros in 2023. Premium income for Life Investment branch 21 increased by 24% in 2023

(Source)

Ageas publishes its results for the fiscal year 2023

Overall, Ageas achieved a strong commercial performance in 2023, with premium income up by 8% in local currency.

The strong operational performance is reflected in the margins of guaranteed products in Life and unit-linked products, which stand at 124 and 39 basis points respectively, as well as in the Non-Life combined ratio of 93.3%.
The net operational result of 1.166 billion euros is well within the upper half of the initially projected range of 1.1 to 1.2 billion euros.
The solid commercial performance also resulted in operational capital generation of 1.8 billion euros, including both Solvency II scope entities and others.
Available operational capital generation amounted to 1.2 billion euros.
In Belgium, premium income increased by 2% thanks to strong growth in Non-Life (+11%), which more than offset the decrease in Life premium income (-2%).
The solid operational performance also resulted in operational capital generation of 573 million euros.

(Source)

Allianz Benelux closes the year 2023 with an operational result of 321.5 million euros.

Allianz Benelux recorded premium income of 3,428 million euros in 2023 (2022: 3,200 million euros). For the Non-Life branch, premium income increased by 5.2% to reach 1,406 million euros. In Life, premium income increased by 8.5% to 2,022 million euros.
In the Netherlands, the increase in turnover in the Non-Life branch (+7.7%) is due to the corporate segment and the Health line of business. In Life insurance (+20.6%), the highest growth in premiums was recorded in the pension and immediate annuity segments.
In Belgium, Allianz also saw an increase in premium income in Non-Life (+5.8%) and Life & Health (+5.2%). Practically all segments contributed to this positive trend thanks to several significant new contracts.

(Source)

Annual results for 2023 of AXA Belgium & Luxembourg

AXA Belgium & Luxembourg shows positive growth across all its lines of business: the annual turnover for 2023 amounts to 4,153 million euros, a growth of +7% compared to 2022. The operational result for 2023 amounts to 429 million euros, an increase of +12% compared to 2022.

In Property & Casualty insurance, turnover increased by +5.2% to reach 2,431 million euros.
Turnover in Health insurance increased by +16.0% to reach 264 million euros, supported by the continuous improvement of customer experience, notably through the provision of innovative digital services.
In Life insurance, growth amounted to +9.3% reaching 1,458 million euros.
The operational result amounted to 429 million euros, an increase of 12.2%, supported notably by a reduction in the charge related to weather events.

(Source)

Appointments – March 2024

What are the most recent appointments in the Benelux?

Christian Gibot

Christian Gibot is appointed Head of Financial Actuarial, Capital and Modeling at BNP Paribas Cardif.

With a MSc in Applied mathematics and economics and a MBA (CHEA) from Paris Dauphine, Christian Gibot started his career with Axa in 2005 as an actuarial research officer and then actuarial team manager. In 2008, he joined “La Caisse des Dépôts”, where he worked as an advisor in the Chief Executive Officer’s office.

In 2011, he joined CNP Assurances as Technical Director in France until his appointment at BNP Paribas Cardif in 2015 as Savings Chief Actuary/Head of ALM. Four years later, he became CEO of Cardif Lux Vie.

In 2022, Christian Gibot was appointed CEO International Markets at BNP Paribas Wealth Management in Luxembourg, where he became a member of COMEX.

(Source)

Insurance news – March 2024

March 26, 2024/in Belgium English /by Fabiola Legrain

Results and Legislation- February 2024

February 21, 2024/in Belgium English /by asquareeditor

Find out the results and legislation news of the insurance market in February.

Results

Branch 21 Insurance Returns Surge in Belgium
Performance Summary of Insurance Services for the 4th Quarter of 2023

Legislation

DORA regulation: Financial sector preparation

Results

Branch 21 Insurance Returns Surge in Belgium

Some branch 21 insurance policies in Belgium yielded returns exceeding 3% in 2023 due to rising interest rates and strong stock market performance, a first in nine years. While certain insurers like AG Insurance, Belfius, and Allianz achieved 3% returns, others are yet to disclose theirs. Tax-exempted contracts saw higher returns compared to taxed ones, reflecting varied tax benefits. Insurers imposed fees and taxes on premiums, and the maximum legal interest rate capped returns at 2%. Some insurers introduced new formulas for higher returns within shorter periods.

Performance Summary of Insurance Services for the 4th Quarter of 2023

The “result of insurance services” totaled 100 million euros, with 60 million euros from non-life insurance and 40 million euros from life insurance. Non-life insurance service results declined by 26% due to increased service charges from storms in Belgium. Life insurance service results fell by 31% due to lower revenues and higher service charges. Financial products and charges amounted to -98 million euros, impacted by interest rate fluctuations and stock market changes. Despite this, the non-life insurance combined ratio remained strong at 87%, with sales increasing by 14% to 549 million euros, while life insurance sales surged by 56% to 685 million euros, driven by successful launches of new structured funds in Belgium.

Legislation

DORA regulation: Financial sector preparation

The financial sector increasingly relies on robust infrastructure and IT services. With growing cybersecurity risks, the European regulation “Digital Operational Resilience Act” (DORA) aims to enhance digital operational resilience, safeguarding financial entities and their clients. Many financial entities are yet to fully prepare for DORA’s implementation, as revealed by an investigation by the Financial Services and Markets Authority (FSMA). FSMA’s recent survey assessed entities’ readiness for DORA, which came into effect on January 16, 2023, with enforcement starting from January 17, 2025. This regulation underscores the importance of managing IT and communication technology (ICT) risks to bolster resilience against cyber threats. While around 50% of entities participated in FSMA’s survey, those yet to respond are urged to familiarize themselves with DORA’s provisions and take necessary steps for compliance.

Sources:

L’Echo, Le rendement de certaines assurances de branche 21 a repassé la barre des 3% en 2023

Assuropolis, Préparation des entités financières à l’entrée en vigueur du règlement européen DORA

Assuropolis, KBC : résultats de l’assurance au 4e trimestre 2023

Market and M&A- February 2024

February 21, 2024/in Belgium English /by asquareeditor

Find out more about the insurance news of this month.

Market

The Global Risks Report 2024: Insights into Worldwide Challenges
Insurance Trends 2024
Financial Associations Urge Enhanced Coordination on SFDR Revision
The Cost of Insurance Fraud
Implementation of Mobility Budget

M&A

Monument Re Expands European Presence with Acquisition of Closed Book Portfolio

Market

The Global Risks Report 2024: Insights into Worldwide Challenges

Released on January 10th by the World Economic Forum, the Global Risks Report 2024 highlights significant risks facing the world, including economic, environmental, geopolitical, societal, and technological challenges. Drawing from the Global Risk Perception Survey (GRPS), the report identifies extreme weather events, AI-generated misinformation, and political/societal polarization as the top global threats for 2024.

The Executive Opinion Survey (EOS) of 2023 reveals Belgium’s national risk perceptions, with economic recession topping the list of concerns. Despite the concerning global outlook, the report emphasizes opportunities for proactive measures at local, national, and international levels to mitigate risks and foster a safer world through investment, regulation, innovation, collective action, and cross-border collaboration.

Report here.

Insurance Trends 2024

Insurance companies focusing on customer-centricity, digital capabilities, and innovation will be best equipped to address the challenges of 2024, as per the “Insurance Top Trends 2024” report by Capgemini Research Institute.

The report outlines initiatives to enhance underwriting profitability, promote sustainability, and leverage AI for operational excellence and customer orientation. Key priorities include improving precision and efficiency through enhanced data and advanced analytics, with a focus on predictive analytics, IoT devices, and cloud technology.

For property and casualty insurers, the emphasis is on refining risk analysis, pricing techniques, and exploring innovations such as digital twins to address insurability concerns and adapt to evolving mobility needs. Life insurers are focusing on products and services for aging well, leveraging digital transformation to optimize processes and enhance customer relations. The report underscores trends in customer orientation, business management, and the emergence of the “intelligent industry” era, offering strategic insights and tactical use cases for profitable growth and future readiness.

Report here.

Financial Associations Urge Enhanced Coordination on SFDR Revision

Several European associations in the financial sector have sent a letter to the European Commission demanding better coordination in the review and publication of new rules regarding the Sustainable Finance Disclosure Regulation (SFDR). The European Commission is currently working on evaluating the draft Regulatory Technical Standards (RTS) that have been published by the European Supervisory Authorities (ESAs), as well as a broader and more fundamental review of the SFDR. In the aforementioned letter, the associations express their concern about the “lack of coordination” between these two review projects.

The Cost of Insurance Fraud

Insurance fraud is not a victimless crime. While insurance companies initially bear the weight, ultimately, the cost is passed on to all policyholders in the form of higher premiums. According to Insurance Europe, insurance fraud accounts for 5 to 10% of total payouts in most European markets for non-life insurance such as auto, fire, and household insurance.

In Belgium alone, this equates to €400 to €800 million annually, translating to nearly €200 extra per average household in insurance premiums lining the pockets of fraudsters. While it’s impossible to prevent all insurance fraud, insurers operate on the assumption of good faith from their clients. Assuralia estimates that verified fraud totals between €120 to €150 million annually, thanks to anti-fraud efforts, preventing payouts to fraudsters.

Implementation of Mobility Budget

In 2023, Brussels employers led in integrating mobility budgets into their salary policies, with 3.5% adoption compared to 2.6% in 2022. Flemish and Walloon employers showed less enthusiasm, at 1% and 0.8% respectively.

The mobility budget encourages eco-friendly commuting by replacing company cars with funds for electric mobility, public transport, or housing expenses. Despite being a small fraction, adoption doubled from 0.2% to 0.4%, with workers aged 25 to 35 leading in opting out of company cars for mobility budgets, particularly in urban areas.

M&A

Monument Re Expands European Presence with Acquisition of Closed Book Portfolio

Monument Re has recently finalized the acquisition of a closed book portfolio from Integrale Luxembourg S.A. through its Luxembourg subsidiary, Monument Assurance Luxembourg S.A. (MAL). The acquired portfolio consists of a long-term life insurance business serving markets in Luxembourg, the Netherlands, and France, with policy terms remaining unchanged for existing policyholders.

This move aligns with MAL’s strategy of expanding its presence in the European insurance market by integrating legacy portfolios from Luxembourg, Italy, and Spain. As a fully licensed life insurance company in Luxembourg, MAL operates under regulatory oversight and has branches in Spain, Italy, and Germany. This acquisition follows the appointment of Carlo Elsinghorst as the new CEO of Monument Re, succeeding Manfred Maske, who played a crucial role in the company’s growth since 2017.