- Italian insured involved in compulsory liquidation of the Luxembourg company Fwu can finally get more details on how to recover the sums blocked since last July. Friday 21 February, the Insurance Commissioner (Caa) has released a statement with crucial updates for Fwu Life Insurance Lux policyholders.
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The press release provided the answers to the most frequently asked questions (Faq), also translated into Italian and available on place of the Authority. “With the judgment of 31 January 2025, the District Court of Luxembourg ordered the liquidation and dissolution of Fwu Life Insurance Lux SA – we read on the website -. The company, now in compulsory liquidation, will no longer be able to operate in the insurance sector. This marks the end of its legal existence, but also a new phase for the policyholders: the recovery of credits relating to their contracts”.
“The liquidator, appointed by the Court, is the lawyer Yann Baden, and will supervise all the liquidation operations to ensure that the rights of the contractors are respected”. To monitor the progress of the procedure, the liquidator has created a dedicated section on his the website.
The Commission has also excluding any possibility of acquiring the company, clarifying that, according to the liquidation procedures established by the Court, a transfer of the portfolio is not foreseen.
Fwu, refunds and super privilege: what changes for policyholders?
The CAA confirmed that contractors will enjoy a “super privilege" on refunds, which means they will have priority over creditors in the liquidation process. During the process, the liquidator will sell the company's assets, including real estate, securities and other investments. The funds from these sales will be used to repay creditors, with particular priority for contractors and beneficiaries with policies. However, it should be emphasized that, although the contractors have precedence over other creditors, thefinal amount that each one will receive It will depend on the overall value of the liquidationThose who have paid high initial costs or invested in unit-linked policies may not be able to recover the full amount paid.
Debt collection: how much and when will contractors receive it?
According to the liquidator's provisions, the first step for the contractors will be to receive a official communication containing a pre-filled credit statement. This document will indicate the amount that the liquidator has determined for each policyholder, calculated based on the value of the policy as of December 31, 2023, with the addition of the amounts paid in 2024. The letter will be sent to the address registered with the insurance company, and the policyholder will have time until 31 January 2028 to return the declaration signed to confirm the amount. After this deadline, it will no longer be possible to participate in the liquidation process.
If the amount indicated in the declaration corresponds to what was expected by the contractor, based on his own statement, it will be sufficient to return the signed form. If, however, the value of the credit results lower to the contractor's expectations, it will be possible to send a request with supporting documentation to request a revaluation of the amount. In this case, the liquidator will examine the request and, if necessary, make changes to the amount of the credit.
Fwu in liquidation: timing and methods of communication
The liquidator's communication will take place within six months of the liquidation order, i.e. by July 2025. Contractors who do not receive the letter by the deadline (for example due to a recent change of address) will still be able to send their credit statement to the liquidator. form to be used will soon be available on the liquidator's official website, which will also provide further details on the procedures.
At the moment, it is not possible to establish a precise date for the payments, but the Contractors will not receive interest for the waiting period, unless there are delays attributable to the liquidator. Furthermore, the treatment will be the same for all contractors, regardless of the time at which they declare their credit or their country of residence, provided that they comply with the terms and conditions established.
The tax treatment of the refund will depend on the country of tax residence of the policyholder and his individual situation. In particular, the amount of capital gains or losses could affect the taxable income. It is important to remember that with the liquidation of the Luxembourg company, all insurance contracts cease to have effect. Consequently, the contractors they are no longer obliged to pay periodic premiums, and any payments made after 31 January 2025 will be returned by the liquidator.
Contacts and assistance for contractors
For any doubts or clarifications on the procedure, the contractors can contact the liquidator, Maître Yann Baden, at the telephone and fax numbers indicated in the official press releases (number: 00352 269756; fax: 00352 26458633). In addition, the Ivass Consumer Contact Center, which offers free support via the toll-free number 800-486661, from Monday to Friday, from 8:30 to 14:30. You can also consult the FAQs published on the official websites of the Insurance Commissioner and Ivass, where all the updated information is available.
