FWU Life Insurance Lux SA Faces Insolvency, Affecting 30,000 Contracts in France
The Prudential Control and Resolution Authority (ACPR) has issued a warning regarding the insolvency of FWU Life Insurance Lux SA, a life insurer based in Luxembourg, which has put 30,000 contracts held by French policyholders at risk. As the situation unfolds, savers' assets remain frozen, raising concerns about the future of these contracts.
Background of the Insurer's Troubles
The issues for FWU Life Insurance Lux SA began in August 2022 when the Luxembourg insurance supervisory authority, the Commissariat aux assurances (CAA), imposed a fine of 200,000 euros due to significant deficiencies in their product monitoring processes and governance. This sanction included a ban on marketing their products in France, which has now escalated into a dire financial situation for the company.
The Path Forward and Implications for Policyholders
Recently, FWU Life Insurance Lux SA communicated to the CAA that it no longer meets the Solvency Capital Requirement and Minimum Capital Requirement. This alarming revelation coincided with the declaration of insolvency by its parent company, FWU AG, in a Munich district court. The CAA has given FWU Life Insurance Lux SA a month to submit a realistic financing plan to regain compliance with the minimum capital requirements. However, the ongoing safeguard measures prevent the insurer from disbursing any benefits to policyholders, leaving many in a precarious situation.
