Liquidation of FWU Life Insurance Lux S.A.: What is happening to FWU?
The Tribunal d'arrondissement de et à Luxembourg issued a judgment on 31 January 2025, ordering the judicial liquidation of FWU Life Insurance Lux S.A., one of the main Luxembourg insurance companies active in the unit-linked life insurance sector.
This decision was taken following the failure to comply with the capital requirements set out in the Solvency II directive, which requires insurance companies to maintain adequate levels of capital to protect investors. The Court therefore deemed the liquidation of the company necessary to ensure the protection of savers.
Liquidation of FWU Life Insurance Lux S.A.: What does FWU mean and why was it put into liquidation?
FWU Life Insurance Lux S.A. is an insurance group based in Luxembourg, specialized in the management of financial life insurance policies, particularly appreciated for the tax advantages offered by the Luxembourg system. Recently, the company entered into crisis due to failure to comply with the required capital requirements, leading to the intervention of the supervisory authorities and, consequent liquidation sentence.
The decision taken by the Luxembourg Court has a strong impact on approximately 34,000 European savers, mostly French and Italian, who have invested in the company's unit-linked policies.
Liquidation of FWU Life Insurance Lux S.A.: How to recover the money from FWU?
Following the liquidation sentence, the Luxembourg Court appoints a liquidator, with the task of:
- Identifying and managing the residual assets of the company;
- Informing the insured and creditors of the steps to follow to obtain reimbursement of the sums invested;
- Distribute the remaining assets among the savers in accordance with the provisions of the law.
Savers will be required to complete a credit statement within 6 months of the judgment, containing information on the amounts invested in order to obtain reimbursement of the amounts themselves.
Liquidation of FWU Life Insurance Lux S.A.: What is the "Luxembourg triad" and how does it protect investors?
One of the reasons why Luxembourg is considered a safe jurisdiction for insurance investments is the Luxembourg triad mechanism, which guarantees:
1. Segregation of assets: the funds invested by the insured are separated from the company's accounts;
2. Independent custodian: the financial assets are held by an independent custodian bank, which must guarantee the safety of the investments;
3. Supervision by the CSSF: the Commission de Surveillance du Secteur Financier (CSSF) monitors the operations of insurance companies to ensure the stability of the system.
Thanks to these measures, FWU Life Insurance Lux S.A. savers have greater guarantees in the process of recovering their capital.
Liquidation of FWU Life Insurance Lux S.A.: What to do?
Those who have invested in FWU Life Insurance Lux S.A. policies must:
1. Wait for the official communication from the liquidator with instructions for requesting reimbursement;
2. Check the documentation relating to your policy and keep it carefully;
3. Monitor updates from the CSSF and the liquidator for any developments.
There will be no preferences among creditors, but policyholders who have taken out a FWU life policy will be treated equally, regardless of when they declare their claim and their country of residence, provided that they declare their claim within the prescribed terms and conditions.
Liquidation of FWU Life Insurance Lux S.A.: How can we help you?
The International Law Firm Arnone&Sicomo, based in Luxembourg, has an in-house insurance law department.
Our Luxembourg lawyers, in collaboration with financial advisors, will help you recover your investment.
Our international lawyers are able to offer assistance in French, English, German and Italian.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
