In this review of Lombard International, we’ll delve into what the company does, how it performs, how to invest, plus other updates.
Lombard International Group offers high-net-worth individuals, families, and organizations insurance-based wealth, estate, and succession planning services. The firm specializes in customized, legal, and efficient solutions that combine the benefits of investments and insurance, having more than 30 years of experience.
Its goal is to help customers preserve and pass on wealth to the next generation while navigating complex legal and commercial landscapes. The business manages assets worth 49.4 billion euros as of December 31, 2023. This spans more than 15 markets worldwide.
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The facts can change from the time of writing, so investments should be made with the guidance of a financial expert.
Lombard International Investment
The firm offers private placement and unit-linked life insurance. The offering gives flexibility, protection, and asset diversification across various territories.
Who can invest in Lombard International?
Investors with high net worth can subscribe to Lombard products and services.
Lombard International Performance
Strong operating results, a neutral company profile, an efficient enterprise risk management system, and a strong balance sheet characterize Lombard International.
The company is well-known in the private placement life and annuity markets in both Europe and the US.
Lombard International Group reportedly has a very good risk-adjusted capitalization, as measured by Best’s capital adequacy ratio. This is supported by a lower-risk liabilities structure across the business.
According to the company, its Luxembourg-based insurance arm Lombard International Assurance SA, has solid financial standing and good health too. AM Best has maintained its A-(Excellent) rating, and KBRA has given it an A insurance strength rating with a stable outlook.
In 2023, the unit was recognized as the “Best Insurance-Based Wealth Solutions Provider,” a testament to its notable dominance in the European unit linked life insurance industry.
Lombard International Updates
Lombard International Assurance Penalties
Earlier this year, Lombard International Assurance was slapped with a nearly 1.7 million euro fine by Luxembourg insurance regulator Commissariat Aux Assurances.
The reason for the fine was that it was found to have neglected to fulfill its duties related to counterterrorism financing and anti-money laundering.
The Lombard International Group division announced that it made rapid corrections, recruiting more compliance specialists and making tech investments. The business stressed that it takes a zero-tolerance approach to money laundering and terrorism financing, and that the fine had nothing to do with any genuine such operations.
Utmost Group Deal
UK-based Utmost Group has agreed to acquire Lombard International Assurance, including its European business which will be united with Utmost International.
The deal will be funded via a 200 million pound bank loan plus existing cash reserves. It is expected to close by year-end 2024.
The Utmost Group has half a million clients and manages assets worth 62.8 billion British pounds.
Utmost International is the global life insurance subsidiary of the Group.
The deal targets to boost Utmost’s position in the EU market for insurance-based wealth solutions.
The existing Lombard International life insurance and product lineup will be sold under the Utmost brand, albeit operations will continue operations from Luxembourg.
The alignment of their operating models is expected to generate synergies and support the combined entity’s ongoing growth strategy.
Sale of Lombard US and Bermuda divisions
By year-end 2023, Lombard International Group has completely offloaded its US and Bermuda businesses, dubbed Lombard US/BDA, to specialist asset management firm BroadRiver Asset Management.
Financial terms of the deal were not disclosed.
Following the close of the agreement, the former Lombard unit rebranded to Axcelus Financial.
The company said present plans will remain as they are, and current policyholders don’t need to take any action right now. The new Axcelus Financial name and brand will be used in all correspondence, policy paperwork, and other materials as needed.
Pros and Cons of Lombard International
Lombard International Benefits
- It enjoys a strong standing in the wealth management and private placement life insurance or PPLI sectors.
- It provides clients with flexibility, mobility, asset diversification, and protection in addition to investment and insurance benefits.
Lombard International Risks
- The complex nature of the tailored goods and services offered is one of the obstacles that Lombard Group faces in its niche market of ultra high net worth individuals.
- The financial performance of Lombard may be impacted by the few high-value deals in the PPLI market as well as changes in the capital markets.
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