Savers filled their life insurance contracts with a net 437 million euros in November, and 3.4 billion since the start of the year, according to data published Friday by the France Assureurs federation.
The monthly figure, however, marks a decline compared to October, when deposits exceeded outflows by 1.5 billion euros.
In detail, last month life insurance recorded a level of contributions (sums paid on contracts) of 12.8 billion euros (+3% over one year) and benefits (which include buyouts and payments in the event of death) of 12.4 billion euros (+11%).
3.4 billion euros net over 11 months
Over the first 11 months of the year, life insurance earned 3.4 billion euros net and contributions amounted to 140.9 billion euros (+6% over one year), a level never reached breaking a previous record in 2021 at 134.6 billion euros, according to Franck Le Vallois, general director of France Assureurs, during a telephone conference.
Units of account (UC), more risky but potentially more profitable, continue to be preferred investments for policyholders. The share of UC contributions stands at 43% for the month of November and 40% since the start of the year, and their net collection amounts to 2.3 billion euros over the month and 28.8 billion euros since the start of the year.
The UC are not a bad choice due to the good performance of the markets and are holding up rather well, allowing them to more than compensate for the outflow of euro funds, underlines the director of the Cercle de l’épargne Philippe Crevel.
A dynamic favorable to PERs
Another point of attention for insurers: the level of benefits since the start of the year, 137.5 billion euros, up 15% compared to the same period in 2022. In November, the market for retirement savings plans (PER) marketed by insurers also recorded 93,300 new policyholders and 1.543 billion euros in payments (including transfers).
Since the start of the year, the net collection of these savings products implemented in 2019 amounts to 6.169 billion euros, up 13% compared to November 2022. The dynamic is rather favorable to PER according to Philippe Crevel, for which the tax deduction upon entry and the anxiety of the French over their purchasing power in retirement can play a role.
Life insurance, which suffers from competition from the Livret A and the Sustainable and Solidarity Development Booklet (LDDS) offering a net return of 3%, much more attractive than euro life insurance funds, however, remains the leading savings product for the French in terms of value, with outstanding assets standing at 1.917 billion euros at the end of November. As 2024 approaches, the director of the Savings Circle believes that the match will be a little more favorable to life insurance than in the last two years.
Livret A, PEL, life insurance, PER… What changes for your savings in 2024
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