The civil court in Antwerp has rendered a judgment declaring 16 SEB Life International insurance policies held by 22 Belgian investors null and void. This marks the first instance in which a Belgian court has invoked the legal principle of “agreements with an unlawful object” to invalidate SEB policies. The declaration of nullity represents the most stringent sanction available.
Furthermore, SEB Life is obligated to reimburse 2.3 million euros, with interest to be added. However, the investors who filed the lawsuit will not receive any additional compensation. If they wish to pursue claims for damages, they will have to initiate a separate legal action.
The case also involved a broker from Aartselaar and the American insurance company AIG, which served as the broker’s professional liability insurer.
SEB Life International is an Irish insurance company and a subsidiary of the Swedish banking conglomerate SEB. The Wallenberg family, a prominent Swedish business dynasty, holds the largest share of SEB, which acquired Irish Life International from its namesake Irish insurance company in 2011, thereby inheriting numerous investment insurance policies.
Several lawsuits are currently underway in Belgium. At least four of these cases pertain to Branch 23 policies issued by SEB Life. Individuals seeking to invest through an insurance provider may choose to engage in investment insurance, commonly referred to as Branch 23. This type of life insurance policy allocates the premiums paid into an investment fund, resulting in a value that may vary in accordance with market fluctuations. Consequently, this can result in potential losses for the policyholder.
In Belgium, as well as in the Netherlands, millions of individuals have taken out such policies. This has given rise to numerous issues, including concealed risks, excessively high fees, highly speculative investments, and instances of fraud. It is not surprising that these financial products in the Netherlands earned the moniker of “usurious” policies, leading to widespread claims and settlements amounting to hundreds of millions.
The individuals who initiated the Belgian lawsuits had taken out policies between 2007 and 2011, just prior to SEB’s acquisition of Irish Life. However, in early 2013, SEB informed them that their deposits were lost, at least temporarily. Most of these individuals had investments linked to the Cubex fund, whose management was convicted in Turnhout in 2018 for offenses including forgery, the use of false documents, and fraud. The Antwerp court has ruled that the policies associated with the Cubex fund are null and void. Decisions regarding other funds will be made at a later time.
