DISSOLUTION AND LIQUIDATION OF FWU LIFE INSURANCE LUX: THE RISKS FOR THOUSANDS OF SAVERS.

In a ruling dated 01/31/2025, the Circuit Court of Luxembourg ordered the dissolution and liquidation of the Luxembourg insurance company FWU Life Insurance Lux S.A.It is estimated that there are more than 100 thousand Italian savers who have invested in FWU through the subscription of unit-linked policies and now feel the risk of losing all or part of the invested capital.

The decision to open the liquidation has become final as of February 19, 2025. In the liquidation ruling, it is stipulated that the financial assets in which FWU Life Insurance Lux S.A. placed the savings of savers for unit-linked insurance contracts be sold as quickly as possible so that the investments can then be redeemed.

It is good, for this reason, for savers to be aware of the procedure to be observed in order to see their rights best protected.The liquidation procedure, rooted in Luxembourg, involves a lengthy process with fulfillments and/or burdens on savers.The institution that operates in our system to supervise and ensure the adequate protection of policyholders (IVASS) is not entitled to intervene in the procedure, being able at most to remain in contact with the CAA (Commissariat aux Assurances), the Luxembourg supervisory body and the EIOPA (European Insurance and Occupational Pensions Authority).

That being said, it is necessary to ascertain what path savers should follow in order to have their invested capital repaid in full or at least in part.Within the six-month period from the publication of the judgment that ordered the dissolution of FWU - and in any case no later than July 31, 2025 - all savers should receive a formal notice from the Liquidator to the last address known to the insurance company - thus no actual notification via PEC or ordinary email is envisaged - containing a pre-filled form of claim statement indicating the amount of the claim deemed eligible and an information note.

Contractors who, for whatever reason, do not receive said missive may still forward a statement of claim to the Liquidator by means of a form made available on the latter's website or by means of an equivalent form completed by a professional.Of particular importance is the fact that the credit statement, once completed and signed, must actually be delivered to the address indicated. For if the document is not ritually returned to the liquidator, the claim asserted could no longer be admitted to the liquidation procedure.

If, on the other hand, the amount communicated by the Liquidator does not correspond to the amount invested, it will still be possible for the individual saver to file a formal objection against the pre-filed statement of claim signed by the Liquidator, thus initiating a subsequent and only eventual phase of the proceedings in the course of which it will be the burden of the opposing saver to attach documentation justifying the refusal and the amount to which he or she believes he or she is entitled. In this case, too, it is important to ascertain that any communication reaches the addressee otherwise neither the amount initially indicated by the Liquidator in the pre-filed credit statement nor the amount claimed as a result of the contested objection could be admitted to the procedure, resulting in the forfeiture of any right to the saver's detriment.

In the event that disagreement persists between the Liquidator and the saver as to the actual extent of the claim, the latter may bring the claim before the Circuit Court of Luxembourg within the peremptory term of 40 days from the sending of the notice by the Liquidator contesting the quantification. This is a peremptory time limit after which the claim can no longer be examined. If, on the other hand, the appeal is timely then it will be the Court of First Instance in Luxembourg that will rule on the merits.

The timeframe communicated for the completion of the liquidation procedure is certainly not short, and savers will still not be entitled to receive statutory interest by way of compensation for the waiting time for the reimbursement procedure.As for the premiums periodically paid, since the opening of the liquidation proceedings, they should no longer be paid since the effects of the insurance contracts entered into have effectively ceased. It follows that any premiums paid, if any, for the period after January 31, 2025 will have to be returned by the Liquidator.

In conclusion, the procedure described above appears to be not without its criticalities due to the numerous formalities that savers are required to observe. It is deemed prudent and advisable to seek the assistance of professionals in the field who can ensure the proper conduct of the entire process envisaged and aimed at recovering the investment.

BLB Studio Legale to date is taking care of protecting the interests of Spanish credit institutions directly involved in the underwriting of FWU policies. Thanks to the recent opening of a new office in Luxembourg led by attorney Patrick Houbert, the firm is also able to offer ongoing assistance to savers who wish to protect their rights by ensuring periodic contacts with the Liquidator precisely because of the presence on site of professionals specialized in the field.

Authors: Avv. Gianluca Bellino e Alessia Donnarumma