Are you expecting a rise or a rebound in euro fund rates following inflation? Don’t expect too much. Concerning the returns served for the year 2021, hopes have been doubting for a long time: rates will fall further. It remains to know how much, and when you will know the remuneration paid on your contract.
2021 rate: what drop for euro funds?
The jackpot will not be for this early 2022. The annual interest paid on funds in euros, during the coming weeks under the remuneration for the year 2021, will not rebound. The banking and insurance policeman, the ACPR (Prudential Control and Resolution Authority), estimated the average return served for the year 2020 at 1.28% on all the funds in euros of the life insurance.
Will the fall continue in 2021? Yes, there is no suspense. Despite the return of inflation (2.8% over 1 year at the end of November) or the rebound in government bond rates (the 10-year OAT, the benchmark indicator, was more than 0.12% at the end of 2021, after having spent months below zero, or oscillating around -0.30% in early 2021). While uncertainty remains as to changes in long-term life insurance rates, for the year 2021, the drop is obvious and the average served on contracts should be slightly above 1%: around 1.10% in 2021 according to the reference site Goodvalueformoney.eu, if we compare with the figures communicated by the French Insurance Federation (1.3% in 2020 according to the FFA) or with the ACPR (1.28%). But when Good value for money restricts its analysis to only life insurance contracts dedicated to individual savings, then the estimate is revised downwards: an average rate of 0.90% in 2021, against 1.08% in 2020 according to this same analysis.
At the end of July, the analysis of the firm Optimind was in all points similar: the decline should continue in 2021 and the average net rate will approach 1%, reducing the difference with the remuneration offered on the Livret A.
Most expected rates between 0.5% and 1.5%
Like every year, the banks will most likely serve the lowest rates. Last year, on the fund in euros of their general public contract, the banks were already assuming returns well below the symbolic bar of 1%. This was the case with Crdit Agricole (0.65% in 2020 on Predissime 9 series 2), Caisse d’Epargne (0.80% on Millevie Essentielle and Nuances 3D) or even Socit Gnrale (0.75%) .
On the other hand, the fall announces so much of approximately 0.20 or 0.30 point, the best insurers should maintain their rate above the bar of 1.50%. Last year, the best rates were served on the side of the emblematic Afer (1.70%), the Asac-Allianz fund in Asac-Faps (1.85%) or Gaipare (1.90%), the mutual Garance and its 2.75% served in 2020 currently appearing as a UFO in the life insurance landscape.
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Remember that all the rates mentioned here are based on the dedicated formula net of management fees but before social security contributions. Thus, when your euro fund earns you 1% net of management fees in 2021, you actually only receive 0.83% after social contributions (17.2%), not to mention that certain insurance gains may be subject to income tax.
Savings: what your investments are really paying you
Unit-linked funds (UC), the other pillar of a multi-vehicle life insurance contract, should post much more favorable results for the year 2021, like the CAC 40, which has broken all records. . But UCs operate radically differently: as with the stock market, gains are only actually cashed once you sell (via a withdrawal or arbitrage) the support, whereas a euro fund allows you to capitalize on the support. annual compensation, each January. Reason why the annual meeting of life insurance remains that of the season of announcement of the rates served on the funds in euros during the year flows.
Life insurance returns: key figures
- Average rate for funds in euros in 2020: 1.3% according to FFA, 1.28% according to the ACPR and 1.08% according to Facts & Figures for a panel more concentrated on life insurance savings contracts alone.
- Real estate funds: 1.60% on average in 2020 against 1.78% in 2019 according to Facts & Figures.
- Dynamic funds (heavily invested in equities): 0.53% in 2020 compared to 1.95% the previous year
- Eurocroissance fund: 1.76% in 2020 compared to -2.17% in 2018 and 7.20% in 2019.
- Facts & Figures forecasts for 2021 returns: classic euro funds 0.90% (or 1.10% approximately by applying the FFA method).
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When will your insurer unveil?
Gone are the days when insurers played elbows, at the end of November or the beginning of December, to announce first the rate of their fund in euros. The event created by the rate announcement season is erased by consistently sluggish yields.
The first rates are still expected at the beginning of January, then the announcements will be phased out until February. If you ever have life insurance online, managed by the insurers Generali, Suravenir or Spirica, leaders in this market, know that they traditionally reveal their rates around January 20, or at the very end of January at the latest. Here are the dates already known for the 2021 yield announcements.
- MACSF: January 6. Last year, the mutual insurer announced a return of 1.55% net of management fees.
- Gaiparous: January 11. As a reminder, the yield served for the year 2020 was 1.90%.
- Primonial / Orada Life: January 11. They will reveal the returns served in 2021 on the very specific Target + and PrimoPer contract.
- Afer: January 13. Last year, the Afer rate (paid by insurer Aviva, bought by Ama) was 1.70%.
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