No rebound for life insurance in the banking networks of the BPCE group. The decline continues but minimally: the rate paid on the main contracts goes from 0.80% to 0.75%. The main change for 2021 is ultimately the launch of a new generation of contracts.
The remuneration of the flagship contracts of the Squirrel and to a lesser extent those of the Banque Populaire was already in the red, with a base rate below the symbolic bar of 1%, and below the overall average for funds in euros. This remuneration (1) continues its erosion. The rate paid on the fund in euros of the consumer contract Millevie Essentielle and its recent successor Millevie Essentielle 2 goes from 0.80% in 2020 to 0.75% for the year 2021.
Even minimal erosion for Banque Populaire’s flagship contract: the base rate served on Horizo and Horizo 2 falls from 0.80% to 0.75%. At the Banque Populaire, the return on the fund in euros can however be increased, but this performance bonus is reserved for the largest savers thanks to a discount on management fees (discount from 15,000 euros, and at the most advantageous rate from 120,000 euros ).
0.75% also on the old Nuances 3D star contract
As for the return paid on the old contracts (Nuances 3D, Grenadine, etc.) insured by CNP Assurances, while the contracts mentioned above are managed by BPCE Vie, it follows the same trend: 0.75% in 2021 against 0 .80% the previous year. Closed for sale since 2016, the Nuances 3D contract has long been the largest life insurance contract in France, with more than 2.5 million copies.
Details of remuneration for 2021
Here is the detail of the yields paid in the banking networks of the BPCE group. First of all the People’s Bank (insurer BPCE Vie):
- Quintessa 2 and Quintessa, Horizo 2 and Horizo: 0.75% 1.10%compared to 0.80% to 1.15% the previous year;
- Child Savings Plan: 0.59% in 2021 against 0.64% in 2020;
- PER Banque Populaire: 1% in 2021 as in 2020.
Retirement : save by paying less tax. 11 contracts compared
Here are the yields served on recent contracts distributed by the Savings Bank. They are insured by the in-house subsidiary, BPCE Vie:
- Essential Millevie (versions 1 and 2) and Initial Millevie (versions 1 and 2): 0.75% in 2021 against 0.80% in 2020;
- Millevie Premium and Capi (versions 1 and 2): 0.90% against 0.95%;
- Infinite Millevie (versions 1 and 2): 1.10% against 1.15%;
- Millevie PER: 1% in 2021 as in 2020.
Here are the rates paid on the old Ecureuil contracts, managed by CNP Assurances:
- 3D and Grenadine shades: 0.75% in 2021 against 0.80% in 2020;
- Initiatives Plus and Transmission, Yoga and Ricochet, Akido: 0.50% in 2021;
- Plus shades: 0.85% in 2021 compared to 0.90% the previous year;
- Privilege shades: 0.95% in 2021 against 1% in 2020.
Comparison of low cost life insurance
Millevie Essentielle 2 or Horizo 2: a changeover allowing negative rates
A renewal that went completely unnoticed! During 2021, Caisse d’Epargne has already ceased marketing the entire Millevie range launched in 2016. To initiate a discreet revolution: the Millevie range is still current but in a version 2: Millevie Essentielle 2, Millevie Premium 2, etc
What’s new? This: (…) The guaranteed amount is equal to the sum of the payments and arbitrations between which will have been subtracted the various costs (entry fees, fees on payments, management fees on outstandings, arbitration fees) ( …). A simple technical development? No! The fund’s capital guarantee in euros, previously calculated net of management fees, is now gross of management fees. Consequently, the insurer reserves the right – in the event of financial difficulty – to provide a negative annual return, up to the management fees. These costs amount to 0.70% per year on Millevie Essentielle 2, so BPCE Vie could one day provide a return of -0.70%.
Life insurance: all 2021 rates, from best to worst
All the rates quoted here are net of management fees but before any social security and tax deductions.