The deal is subject to regulatory approval by Luxembourg’s Commissariat aux Assurances.
Foyer said on Wednesday it would be integrating IWI’s local insurance portfolio into Foyer Vie, the subsidiary of Foyer S.A. active in Luxembourg’s life insurance market.
All current contact persons will continue to serve IWI’s distributors and customers, who will also be able to benefit from the wider product offering from Foyer. Foyer currently offers insurance, protection, and wealth management services.
The plan also calls for IWI to merge with Foyer International, creating a company which would rank in the top five life insurance companies operating under Luxembourg laws covering wealthy clients.
At the end of 2015, both companies had approximately €7bn (£5.76bn, $7.8bn) of assets under management in total, while their combined premium income was estimated at €1bn.
When fully merged, IWI and Foyer International will cover 11 European countries and some niche markets, in compliance with the legal and fiscal framework of each country of residence.
“This large presence will provide it with a prominent position on the international life insurance market,” Foyer said in a statement.
Marc Lauer, chief executive of Foyer, said: “Acquiring IWI represents a unique opportunity to enlarge our activities in the growing sector of life insurance.
“This is part of our strategic vision of development and allows us to reinforce our competitive position. In addition, through this project, which demonstrates the trust of our shareholders and our financial strength.
Luc Rasschaert, head of IWI, added: “I’m convinced that the centre of international competence composed by IWI’s multi-disciplinary teams of experts will fully integrate within Foyer Group. The merger of both entities in which excellence is a shared value is part of an interest to pool our expertise in international life insurance.”
Foyer S.A. currently offers insurance, protection, and wealth management services.