Life insurance companies coverage ratio in Luxembourg 2013-2022
In 2022, life insurance companies in Luxembourg reached a coverage ratio of approximately 178 percent. The coverage ratio is a measure of a company's ability to meet its financial obligations. The higher the number, the better the ability of the insurance companies to fulfill their obligations to their lenders. Should the number go below 100 percent, obligations can no longer be fulfilled.
In the Global Financial Centers Index, Luxembourg was ranked as having the one of the most competitive financial centers in Europe. In recent years, the Grand Duchy made efforts to diversify its financial activities in certain niches such as Chinese and Islamic finance, together with FinTech. Luxembourg's three traditional strengths, however, involve its activities in investment funds, banking and insurance.
