Life insurance in France continued to attract billions of euros in savings in the first half, but saw its total outstandings eroded by the decline in value of certain riskier investments, France Assureurs announced on Wednesday.
This savings product “records an excellent first half of the year”, welcomed during a conference call Franck Le Vallois, the general manager of this professional federation.
With 76.4 billion euros in contributions or deposits – the highest level since 2010 – and 64.3 billion euros in payments (withdrawals), the flow of savings was positive in the first half.
Net inflows thus reached 12.1 billion euros, up 1.8 billion euros compared to the same period last year.
But it does not compensate for the fall in the valuation of certain investments in life insurance: certain units of account (UC), riskier but potentially more profitable, have been mistreated since January 1, in particular because of the poor shape of the markets.
Life insurance outstandings at the end of June reached 1.821 billion euros, i.e. 55 billion euros less than at the end of December 2021.
Despite this, unit-linked funds still attract savers: their net inflow is positive (+20.9 billion euros) unlike that of euro funds (-8.8 billion euros) whose capital is guaranteed.
The month of June also reflects this “not new” trend to the advantage of UCs, underlined Franck Le Vallois, vector according to him of “a search for better diversification” among savers.
Diversification which has also been to the advantage of Livret A since the beginning of the year: the net inflow of this regulated product (+16.5 billion euros) is higher over the period than that of life insurance for yet five times less outstanding (359.8 billion euros).
A dynamic which should continue with the passage of the rate of the Livret A to 2% on August 1, that is to say more than number of euro funds.