Unlisted securities held in life insurance

Luxembourg insurance regulation allows a large range of underlying investments in internal funds.

These investments may take the form of unquoted/unlisted assets, depending generally on the investment strategy of the life insurance policy.

As investors in these particular and usually more complex assets, insurers face increased risks and challenges.

Risks associated do not only relate to valuation concerns. Legal, compliance, governance and other policy management matters, shall, amongst other, be assessed and monitored on an on-going basis, especially for cross-borders policies.

The need for comprehensive and streamlined processes and controls is enhanced, and an implementation of a clear action plan in order to address these challenges should be seen as a priority.

In close collaboration with PwC's subject matter experts, PwC's Academy has designed a training made of 3 complementary building blocks to offer an effective, flexible and cost-efficient approach for insurance professionals to build-up and maintain their knowledge and competence.

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

• understand the key regulations and circular letters applicable to investments (incl. CAA LC 15/3);
• identify the main investment forms/vehicles for unlisted securities;
• explain the main valuation techniques and accounting impacts thereon.

1. Rationale for having unlisted securities in policies

Financial perspective
Tax perspective
Asset management perspective

2. Definitions, concepts & valuation considerations

The concept of value (definitions and context)
Valuation methods
Practical considerations

3. Accounting/financial analysis

Insurer’s accounting perspective
Key disclosure requirements for insurance and commercial companies
Standalone versus consolidated accounts
Illustration

4. Procedures and controls

Structuring a comprehensive procedure and controls within the organisation
Market benchmarking and pitfalls observed

Attendance Certificate

This training is coordinated and delivered by Anthony Dault, Partner PwC Luxembourg.

Anthony is a partner specialised in insurance/reinsurance and international tax structure, and is actively involved in PwC Luxembourg Reinsurance and Insurance Group (RIG), including the insurance and reinsurance regulatory team. Anthony has more than 18 years of experience serving several multinationals, subsidiaries of European and US registered companies reporting under IFRS or Lux GAAP in the insurance and reinsurance sector, starting in 2003 in PwC Paris insurance department and in PwC Luxembourg. In the past years, Anthony has been involved in the development of the PwC Luxembourg insurance regulatory practice, with a strong focus on cross-border distribution as well as regulatory licensing projects. In that context, he co-heads the IDD service offering of PwC Luxembourg, and is a member of the ACA IDD working group.