The French still deposited more money than they withdrew on their life insurance in July, even if the differential was reduced compared to 2021, to 800 million euros, according to data communicated Monday by France Assureurs, the sector federation. In July 2021, net inflows thus amounted to 1.1 billion euros, i.e. 300 million more than in July 2022.
A “slight decrease“Over one year, notes Franck Le Vallois, managing director of France Assureurs, but an increase compared to the 600 million euros of June 2022. “The result for this month of July is a poor performance because excluding special years such as 2012, 2020 or 2021, the collection of the seventh month of the year generally exceeds 2 billion euros“, for his part reacted Philippe Crevel, director of the Circle of savings.
Since the start of the year, life insurance has earned 12.9 billion euros net, or 1.4 billion more than in 2021 over the same period. In detail, in July, collection continued to be driven by “units of account“(UC), a potentially more profitable investment method than the traditional “euro funds“, whose capital is guaranteed, but also more risky.
In July, the French thus favored units of account (2.5 billion euros in net inflows), while withdrawals from funds in euros exceeded investments by 1.7 billion euros. Funds in euros have seen their yield melt in recent years, weighed down by the continuous fall in interest rates.
Livret A competition
In 2021, the average return net of social security contributions amounted to 0.89%, well below inflation, according to the barometer of the firm Facts and Figures. It could rise in 2022, but will remain well below inflation, and could also be lower than the yield on the Livret A, whose interest rate was raised to 2% on August 1, “which will be a first“, underlined Mr. Crevel.
“The Livret A and life insurance are not comparable productsand meet different objectives, argued Mr. Le Vallois to put the risk of cannibalization between the two products into perspective. He notably cited the previous revaluation of the Livret A, which rose in February from 0.5% to 1%, which had no significant effect on life insurance.
Conversely, the year 2020, marked by the explosion of the Covid-19 pandemic, had been a record year for Livret A, while life insurance had experienced historic disaffection. In total, at the end of July, the outstanding amounts of life insurance contracts reached 1.847 billion euros, i.e.an almost stable level over one year“, according to France Assurers.