Monument Re Acquires Run-Off Life Insurance Portfolio
Monument Re acquired a run-off portfolio of flexible premium retail life insurance contracts from Ethias in Belgium and will transfer it to its subsidiary Laguna Life DAC, domiciled in Ireland.
The transfer will result in the loss of the savings (invested capital) guarantee in Belgium up to a maximum of EUR 100,000; Ireland has no equivalent system. Regarding returns, and according to Ethias CEO Philippe Lallemand, “The payment of the guaranteed returns on these contracts (i.e. 3.46% on average) should not be affected by this transfer.” (emphasis added)
Ethias is the fourth-largest insurer and the largest direct insurer by gross written premium in Belgium, with a market share of 11% in non-life insurance and 7% in life insurance as of 2016. Ethias has strong historical links with Belgian local public organizations; the product range is aimed at retail clients and public authorities, such as regions, cities and municipalities, provinces, the federal state of Belgium, schools and hospitals but also private companies. Ethias used to be known as SMAP/OMOB and changed its name in 2003. In the wake of the financial crisis, it had to demutualize in 2008 and now is a joint stock company that is controlled by a cooperative and by different components of the Belgian state.