S.A.F.E ! Security - Adaptability - Flexibility - Expertise.
These are the defining characteristics of the Allianz LifeLuxembourg insurance contract . At a time of economic, fiscal and political uncertainty and instability, the Luxembourg insurance contract stands out like a beacon in the night.
Let's find out to what extent the solidity and expertise of the Allianz Group, coupled with the structural advantages of the Luxembourg financial center, make it possible to offer a product that is unique in Europe for structuring one's wealth with complete peace of mind.
1. Security: a stable, reassuring investment framework
The first advantage is the possibility for the subscriber to invest in a stable and reassuring environment.
The solidity of the Allianz Group
Rated AA for over 10 years, the Allianz Group boasts a solvency ratio of over 200%, enabling it to cope with the constant changes in its sector.
Present in 70 countries, the Group puts over 130 years' experience in life insurance and asset management at the service of its customers.
The Group's solidity and reliability make it the world's leading insurer among more than 100 brands.
Owned by its parent company in Germany, Allianz Life Luxembourg has been distributing contracts under the freedom to provide services agreement for over 40 years.
The stability of the Luxembourg marketplace
- At a time of global political and financial instability, Luxembourg's AAA rating has been renewed by Mood's, Fitch and Scope Ratings for more than 36 years, guaranteeing its financial and political stability.
- Subscribers benefit from a constant fiscal and regulatory framework.
- The country's debt ratio (26.1% of GDP at Q1 2025) is the lowest among AAA-rated sovereign countries, far from France's 114.1% or the Eurozone average of 88%.
- Mood's also highlights "the authorities' ability to manage risk effectively".
Unique, enhanced policyholder protection in Luxembourg
- The "security triangle" and the "super privilège" guarantee that, in the event of the company's bankruptcy, the subscriber will recover the total number of his securities at the value on the day of transfer before any other creditor (State, employees, etc.), with no guarantee ceiling, unlike in France. Even if the "super privilège" - twice proven effective in Luxembourg - is a major asset for the security of the subscriber, investing via a solid insurance company remains the best possible prevention, since it will only apply in the event of the latter's bankruptcy.
- Although the Commissariat aux Assurances may consider temporarily suspending certain operations (such as surrenders) in order to guarantee fair treatment for all policyholders when applying the "security triangle", it should be remembered that Luxembourg does not have a blocking mechanism similar to that of France's SAPIN 2 law, which is designed to be implemented in much broader situations, such as a threat to the country's economic and financial stability.
In addition, the fact that the life insurance policy cannot be seized by creditors on the death or during the life of the insured is an integral part of the policyholder's security (particularly for entrepreneurs and partners in certain companies).
2. Adaptability: the solution for mobile customers
The Luxembourg contract is designed to support international mobility:
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Tax neutrality: Only the tax system of the policyholder's country of residence applies in the event of surrender, thus avoiding double taxation. Luxembourg levies no withholding tax, unlike France (which can levy up to 35% without a tax treaty).
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Cross-border expertise: Allianz Life Luxembourg's expertise enables us to anticipate the tax, financial and regulatory arrangements required before a policyholder moves abroad, whenever possible. The aim is to ensure the application of civil and/or tax provisions specific to insurance contracts in the new country of residence at the time of death and/or surrender.
3. Flexibility: tailor-made financial structuring
Luxembourg contracts offer a high degree of flexibility in financial structuring, the limits of which depend on the value of the assets and the amount of the premium invested in the contract. They allow you to invest in a wide range of assets (Euro funds, UCITS, ETFs, hedge funds, private equity, structured products, etc.).
The contract offers 3 specific vehicles (internal funds):
- FID (Fonds Interne Dédié) and FIC (Fonds Interne Collectif): Under management mandate.
- FAS (Fonds d'Assurance Spécialisé): Allows you to manage your funds yourself, with or without advice.
This flexibility is also reflected in the possibility of depositing funds with different banks, having several financial managers, several management policies and investing each fund in a different currency within the same contract (e.g. a dynamic FID in dollars with management company A and a balanced FID in euros with management company B).
The contract therefore offers a high degree of personalization in financial allocation, according to the risk profile and asset objectives of the customer, particularly for very wealthy or institutional clients.
4. Expertise: state-of-the-art wealth management support
Allianz Life Luxembourg's expertise goes beyond simple financial customization, encompassing all aspects of wealth structuring, particularly in the event of relocation.
The insurance package offers numerous advantages:
- Transmission: modification of the beneficiary clause at any time, possibility of deferring the transmission, of dismembering a sum of money, of imposing conditions, of adapting the distribution of capital according to the situation of the beneficiaries at the time of death, etc....
- Management during your lifetime : Capitalization of income to limit CEHR or CDHR taxation in the absence of redemption, reinvestment of capital from a dismembered asset, co-subscription with second-to-die settlement to protect the spouse, etc.
The Wealth Planning department supports its clients in securing and optimizing their strategies, both during the life of the contract and when it is transferred to their heirs.
But their greatest expertise lies in listening carefully to their customers' needs, without which technical expertise is meaningless and ineffective. They attach the utmost importance to the service provided to their partners and policyholders, ensuring responsiveness and constant contact. The aim is to offer a transparent, worry-free management framework, notably by providing a digital platform for monitoring the contract's progress, and by offering to manage all related taxes in the event of surrender or death, subject to obtaining a tax mandate for a French resident.
In conclusion, the solidity of the Allianz Group combined with the stable environment of Luxembourg is the ideal combo for structuring your assets in a serene and sustainable way.
This article has been automatically translated using Breeze, powered by DeepL.