Who has one bill with Fwu Life Insurance Lux can breathe a sigh of relief: the liquidation of the company does not involve the total loss of savings for the insured and, where applicable, for their beneficiaries.
Confirming this is the Insurance Commissioner (Caa), the Luxembourg authority that supervises the insurance sector, which has published an excerpt of the judgment relating to the liquidation of the company. Let's see in detail the latest news on the Luxembourg company, which went into compulsory liquidation, and the steps to be followed by the insured.
Read EVEN Fwu in liquidation: long times, complex procedure and uncertain refunds
Fwu Liquidation: The Latest News
By a judgment dated January 31, 2025, the Court of First Instance of Luxembourg declared the company Fwu Life Insurance Luxembourg in liquidation. The liquidator has been appointed Master Yann Baden, who will be responsible for managing the company's assets and distributing them among creditors, including the insured. cessation of payments was set for July 22, 2024.
Despite the complexity of the procedure, the CAA has assured that the company's restricted assets, deposited in a custodian bank, will be used primarily to reimburse policies. Although the process may take time, policyholders they will not lose all of their invested capital and there is a reasonable chance of recovering at least part of the savings, but they will have to follow the correct procedures to access refunds and pay attention to deadlines.
Fwu Policies: What Policyholders Should Do to Recover Savings
One of the most important phases of the liquidation will be the letter that each insured person will receive from the liquidator. Within six months of the ruling, the insured persons (and the beneficiaries of the policies) will receive a communication that will provide all the practical details, including the amount of the credit claimed.
Furthermore, the insured will have to file a formal complaint to the liquidator within the 31 January 2028, specifying the amount they believe they should receive. Those who do not submit their claim by that date risk losing their right to receive a refund. Although the deadline is distant, it is possible that some refunds may be made before that date, depending on the progress of the liquidation process.
How objections and credit checks work
Once the letter is received, creditors (including insured persons) will be able to consult the Lists of accepted credits which will be filed with the Registry of the Court of Luxembourg. The lists will be updated every three months, during the first 10 days of January, April, July and October, giving creditors time to present opposition if they believe that their credits have not been properly considered.
The opposition must be formalised through declaration to the registry and, if it is not reiterated within three days by registered letter to the liquidator, the opposition will not be accepted. Once the 10-day deadline has expired, the uncontested credits will be definitively admitted.
Payment of dividends and interest
The liquidator will ask the court to authorize the distribution of the dividends. Once the financial statements are approved, the date will be published, and the dividends will have to be distributed within four months.
However, no interest will be paid to creditors with claims not definitively admitted that will receive dividends after other creditors, unless the delay is caused by the normal liquidation operations.
Eligible creditors who receive payment with a delay between the consent judgment and the actual payment will also not receive interest. This delay may arise from missing information from the creditors, legal obstacles or identification difficulties.
Finally, undistributed dividends will be retained by the liquidator and will produce interest for the benefit of the mass of creditors.
Fwu ruling: Italian translation missing, Ivass ready to intervene
One point that has raised some doubts concerns the translation of the official documentation. The ruling was published by the CAA in French, German, English and Dutch, but many Italian insured persons wondered why if it wasn't available in Italian, considering that Italy is the country with the highest number of policies sold.
Fortunately, the'Ivass (Institute for Insurance Supervision) has confirmed that it will provide a translation official document in Italian, thus providing clarity to Italian policyholders. In the meantime, policyholders will be able to turn to industry professionals for specific advice or for more information.
Updated Thursday, February 6 at 15:55 PM
