0%, or even worse, on contracts that allow it? No! No catastrophe is to be expected for life insurance funds in euros in 2022, in particular thanks to the significant reserves of wealth accumulated by insurers.
The 2021 return on life insurance euro funds was not as bad as expected. Neither the sector regulator, the ACPR, nor the France Assurers federation have yet announced an average rate for the year 2021, but it should ultimately be quite close to that of 2020, which was 1.28%. .
Life insurance: 2021 rates for large euro funds, from best to worst
How much will the money you deposit or let live currently be remunerated? You will know in a year, when insurers will reveal the 2022 remuneration of life insurance funds in euros. Interviewed at the end of February by MoneyVox, Cyrille Chartier-Kastler, founder of the insurance prescriber site Goodvalueformoney.eu, and leading observer on the financial aspects of life insurance, already mapped out any risk of industrial catastrophe: The 2022 performance of euro funds is already largely knownsince bond income [investissements en emprunts aux entreprises ou aux Etats, NDLR] in which insurers have invested are known. The performance of fund assets in euros may vary by +0.50 or -0.50 points compared to 2021… then it will depend on what each insurer intends to do with its reserve.
The reserve? Cyrille Chartier-Kastler refers to the provision for profit sharing (PPB), a stock of wealth that insurers will provision each year, with the obligation to return this reserve to policyholders within 8 years. The overall reserves existing in euro funds at the end of 2020 are valued at 173 billion euros corresponding 12.1% reserve yield, calculated last year Good Value for Money. A treasure that will largely enable insurers to anticipate financial crises and uncertainties, at least for a few years.
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At the end of 2022, the question of reserves will arise
Even the insurers recognize that recourse to the PPB will be the key next year, for the 2022 compensation, like Bernard Le Bras, chairman of the board of Suravenir: We will have to analyze the collection of life insurance in 2022. he year could be difficult, he judged in mid-January, shortly after the announcement of the rebound of the Livret A 1%. At the end of the year, the question will arise. The PPB is made for this: so that funds in euros remain competitive in the event of a rise in rates.
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The lesson of 2021, and which will therefore also apply for the years to come, is that insurers can serve whatever yield they decide!, emphasizes Cyrille Chartier-Kastler, referring to returns that are less bad than expected in 2021. With the reserves constituted in PPB, on latent capital gains and in capitalization reserves, they have room for several years. And savers are not immune to good surprises, the image of the MACSF whose performance rose from 1.55% to 2.10% net of management fees. In 2021, the good surprises are partly due to bold financial strategies, the image of the MACSF which had bet on the private equityemphasizes Cyrille Chartier-Kastler.
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