1. Change in the status of FWU Life Insurance Lux S.A. (“FWU”): dissolution and compulsory liquidation of the insurance company

By a judgment dated 31 January 2025 (not yet published with the Luxembourg electronic compendium of companies and associations at the date of this newsletter), the Luxembourg District Court ordered the dissolution and liquidation of FWU.

Given that Luxembourg’s Supervisory Authority for the Insurance Sector (Commissariat aux Assurances, hereafter the “CAA“), noted the failure of FWU’s recovery plan (see its 22 January 2025 press release published on its website) it filed a petition for dissolution and compulsory  liquidation against FWU with the Luxembourg District Court.

As a reminder, FWU, which had been placed under the suspension of payment (sursis de paiement) regime by a judgment of 2 August 2024, had to implement a recovery plan following the CAA’s decision, meaning by 19 January 2025 at the latest. The plan had to either re-establish FWU’s own funds to satisfy the Solvency Capital Requirement, or reduce its risk profile to ensure compliance therewith.

In the above-mentioned 31 January 2025 judgment, the Luxembourg District Court named as liquidator Maître Yann BADEN, avocat à la Cour, residing at L-6187 Gonderange, Z.A. Gehaansraich, with the mission to liquidate FWU and set the date for the cessation of payments of the insurance company at 22 July 2024.

  1. Immediate consequences for you as FWU insurance policy holders and clients

The dissolution and liquidation of FWU leads us to advise you, as FWU policy holders and clients, to take the following preliminary measures:

  • Immediately stop (if you have not already done so) making insurance premium payments to FWU; and
  • Gather together the information and supporting documention with a view to filing, when the time comes, the declaration of your claim upon FWU’s liquidation.

Please note that the 31 January 2025 judgment specifies that from that day forward, the interest rates on all claims not guaranteed by a privilege, collateral or a mortgage shall be halted.

From 31 January 2025 forward, no further compensation shall be due except in the following circumstances:

  • Existence of related debts; and
  • Application of the provisions of the Law of 5 August 2005 on financial collateral arrangements.

Within six months of the judgment of dissolution and liquidation, the liquidator will send to any creditor known or identifiable from the insurance company’s books, a note (indicating the general effects of the liquidation procedure on the insurance contracts, in particular, the date on which the insurance contracts or operations cease to produce their effects and the rights and obligations of the insured concerning the contract or transaction), as well as a pre-filled in declaration of claim.

Claims will be filed with the liquidator in accordance with Article 252 (4), (5) and (6) of the Law of 7 December 2015 on the insurance sector, as amended.

The deadline by which creditors must submit their claims to the liquidator is set at 31 January 2028, on pain of foreclosure.

With respect to any legal proceedings potentially ongoing against FWU, such proceedings shall be interrupted by effect of the judgment ordering FWU’s dissolution and liquidation.

In this context, it is advisable to inform the liquidator of the existence of any legal proceedings initiated prior to the judgment in order to ensure their continuation.

  1. DSM Avocats à la Cour can assist you in this matter

We would be glad to assist you at any stage of the FWU judicial liquidation.

More specifically, and at this stage, we can assist you in drawing up your statement of claim against FWU or in making written representations to FWU’s liquidator concerning your claim. If you wish to appoint us for this purpose, please send us the following documents and information in particular:

  • A copy of the supporting documents for your claim; and
  • Indicate the nature of the claim, the date it arose and the amount.

We can also assist you with the resumption of proceedings initiated prior to the judgment.

Should you wish to request our assistance in connection with this liquidation, please contact us at one of the following email addresses:

We remain at your disposal for any additional information you may wish to receive on this issue.

Marie-Paule GILLEN, Marie JACQUET & Frédéric SEINCE.