In a press conference held this Wednesday, France Assureurs takes stock of the life insurance market in 2023. Find out here what your savings finance.
The average rate of life insurance funds in euros amounts to 2.6% in 2023. Over 13 years, the average lifespan of a contract, the average performance amounts to 2.1% per year, reports France Assureurs in a press conference this Wednesday March 27.
“In the long term, since 2010, life insurance contracts have offered superior performance to that of Livret A,” explains the federation of insurers. Savers have the possibility of boosting their remuneration by investing all or part of their savings in units of account (UC), investments that are riskier but potentially more profitable. According to figures from France Assureurs, the average performance of UC supports reached 6.2% in 2023 (3.1% on average over 13 years).
And insurers still have room for good returns over the coming years. In fact, the provision for profit sharing (PPB), this reserve which makes it possible to smooth the performance of funds in euros over time, reaches 4.4% on average at the end of 2023.
Livret A or life insurance: which investment earns you the most interest?
Where are your savings invested?
Life insurance remains one of the French people’s favorite investments. This savings product will also retain “in 2023 its market share of around 15-20% within the main financial investments”, reports France Assureurs.
But where is your money held in euro funds and units of account invested? “Contrary to the urban legend that insurers invest everything in government bonds, the reality is that they finance companies up to two thirds of the assets that they hold, or 1,441 billion euros. Debt and capital financing,” reports France Assureurs. In detail, no less than 777 million euros finance corporate bonds533 million actions and 131 million business real estate. Only 555 million are invested in government bonds.
France Assureurs also reported that insurers increased the share of corporate financing in favor of the ecological transition, therefore green investments: “in 3 years, the share of green investments by insurers has doubled going from 3.9% to 7.8% “. At the same time, they are accelerating their divestment from fossil fuels. Indeed, investments in coal, oil and gas decreased by -21% during the year 2023. They now represent 1% of assets managed by insurers.
Compare the best life insurance offers