Insurance non-standard assets holding - The essentials

Luxembourg's insurance regulation permits a broad range of underlying investments in internal funds. These investments may manifest as unquoted/unlisted assets, depending on the overall investment strategy of the life insurance policy.

As investors in these specific and typically more complex assets, insurers encounter increased risks and challenges. These risks are not limited to valuation concerns but extend to legal, compliance, governance, and other policy management matters. These aspects need to be assessed and monitored continuously, especially for cross-border policies.

The imperative for comprehensive and streamlined processes and controls is heightened, and implementing a clear action plan to address these challenges should be considered a priority.

By the end of this course, participants will be able to:

• identify the main investment forms/vehicles for unlisted securities in insurance;
• understand the key regulations and circular letters applicable to investments (incl. CAA LC 15/3);
• gain a clear perspective on these assets under accounting and tax considerations;
• understand these holding impacts in terms of controls and governance.

• Rationale for having unlisted securities in policies
  • Financial perspective
  • Tax perspective
  • Asset management perspective
• Definitions, concepts and valuation considerations
  • The concept of value (definitions and context)
  • Valuation methods
  • Practical considerations
• Accounting/financial analysis
  • Insurer’s accounting perspective
  • Key disclosure requirements for insurance and commercial companies
  • Standalone versus consolidated accounts
  • Illustration
• Procedures and controls
  • Structuring a comprehensive procedure and controls within the organisation
  • Market benchmarking and pitfalls observed

This training is coordinated by Anthony Dault, Partner, and Mehdi Laghlam, Director at PwC Luxembourg.

• Anthony Dault is a partner specialising in insurance and reinsurance with over 20 years of experience gained through PwC’s Luxembourg and Paris practices. He leads audit engagements for multinational subsidiaries under various reporting frameworks, overseeing the insurance audit line and managing operations and HR for audit staff. Anthony directs both technical and non-technical training curricula and external training in this field. Beyond audits, he leads insurance regulatory solutions focusing on ESG/SF, AML/KYC, cross-border distribution, and compliance support. He has successfully delivered regulatory licensing and restructuring projects from strategic planning to operational setup.
• Mehdi Laghlam is a director with eight years of expertise in insurance and reinsurance, specialising in AML, fraud, sanctions, and KYC. He plays a key role in PwC Luxembourg’s Audit and Regulatory service, leading the AML taskforce that supports audit teams and clients through AML audits, special reports, and training on regulatory updates. Mehdi has extensive experience in due diligence, macro process assessments, and control testing within Advisory. He also leads audit engagements for multinational subsidiaries of European and US companies under diverse reporting frameworks, contributing significantly to AML risk assessments, remediations, fraud investigations, and AML/CTF training initiatives.