“no risk” for savers despite the banking crisis

The professional insurance federation told AFP on Tuesday that there was “no risk” for savers in life insurance, while the setbacks of several American banks and Credit Suisse are fueling concerns about the financial sector.

“There is no risk in life insurance for savers”, underlined the managing director of France Assureurs Franck Le Vallois, adding that he had “no knowledge of insurers in difficulty” in France. Life insurance is the number one savings item for the French with 1,871 billion euros at the end of January, including 1,378 billion in euro funds.

Like bankers and asset managers, insurers have had to manage for several months the critical moment of the hike in key central bank rates.

Life insurance “is growing”

While this policy, intended above all to counter inflation, allows them to invest in new, more profitable bonds, it reduces the market value of their older bonds, which have become difficult to resell if necessary.

But redemptions (equivalent to withdrawals) are “stable”, said Franck Le Vallois, who insists that life insurance “is growing”. Thanks to deposits and units of account (UC), these savings contracts swelled by 1.2 billion euros in January, according to figures from France Assureurs.

Bankers and insurers have made it their mission to reassure savers and investors after two rocky weeks on the stock market.

The notion of a banking crisis is “irrational”

The president of the French Banking Federation (FBF) Philippe Brassac assured Monday in an interview with AFP that the notion of a banking crisis was “irrational”.

The director general of Société Générale Frédéric Oudéa said on Saturday on BFM Business that European banks were “extremely solid”.

The financial sector is closely monitored by the Prudential Control and Resolution Authority (ACPR), often compared to a policeman, which depends on the Banque de France.

Reproduction forbidden.

source site-96