Lombard International Assurance Sees AuA Soar

Stephen Little

19 March 2014

Lombard International Assurance, the Luxembourg-based life assurance company that also provides wealth management products for high net worth clients, has reported an increase in total assets under administration of 4 per cent to reach a record high of €24.3 billion for 2013, up from €23.3 billion the previous year.

New business premium income was €2.34 billion in 2013, down from €2.92 billion the previous year, primarily due to material changes in the Belgian market impacting the Luxembourg life insurance industry as a whole, the firm said in its annual statement.

Underlying profitability materially rose in 2013; the IFRS-defined operating profit rose 20 per cent against 2012. This was supported by a growing in-force book and controlled expenses, resulting from efficiency investments made in the last 24 months, together with lower non-recurring expenses than in 2012.

Market consistent embedded value was €726 million at 2013 year-end, down from €765 million in 2012, while FRS operating profit was €40.5 million in 2013, a 20 per cent rise from €33.8 million in 2012.

Improved profit and cash surplus, combined with a stable solvency position, allowed Lombard International Assurance to propose the payment of a dividend of €16 million for 2013 to its parent company.

Chief executive officer Claude Marx said the firm remains strongly positioned in the wealth management sector and its expense base continues to experience positive benefits alongside increased efficiency as a result of a major development plan launched in 2012.

“Our strength lies in developing relevant, tax compliant solutions for existing markets and expanding into new markets on the back of this expertise. Throughout 2013, we have developed new solutions for our core markets and will continue to do so in the future. Our company is well-positioned to perform strongly through the delivery of high-value, holistic solutions to our partners and clients,” said Marx.

Earlier this month, Lombard International Assurance appointed Robert MacIntyre to lead its wealth structuring solutions unit. The firm also appointed Daniel Starberg to lead the Nordic team, covering Finland, Sweden and Norway and joins from a Swedish law firm where he was tax partner. Maik Buffone has joined as wealth planner for Italy from IWI Luxembourg, specialising in Italian, German and UK taxation.

In other recent news, last month Lombard International Assurance launched a service that enables UK residents to gift assets to their children, while maintaining some control over when they receive them. For more on this story, click here.