Life insurance: savers invested heavily in unit-linked products in June, just before the market rebound in July

Life insurance: good deals

Despite the deteriorating economic environment, the development of Life Insurance remained well oriented in June, indicates France Assureurs. Indeed, in June, life insurance payments were 11.9 billion euros. But the big surprise is the proportion paid on the units of account. Indeed, while the financial markets were in turmoil, savers were not afraid and bet on a market turnaround. Thus, the payments on the units of account were 5 billion euros in June, thus representing 42% of the payments, a very high level. Was it really the right time to invest in units of account? Time will tell, but July’s rebound is an excellent sign. The start of the school year could be quite different.

The euro funds therefore collecting 6.9 billion euros on their side (see best funds in euros, without constraints). Outstanding life insurance contracts stood at 1,821 billion euros at the end of June.

Benefits were also down over the month compared to last year, at 11.3 billion euros (−0.7 billion euros compared to June 2021). As a result, net inflows amounted to +0.6 billion euros in June (compared to +1.2 billion euros in June 2021). It amounts to +3.2 billion euros in UA and −2.6 billion euros in euros.

Life insurance in the first half of 2022

In the 1st half of 2022, life insurance premiums reached an unprecedented level since 2010, at 76.4 billion euros (+0.7 billion euros compared to the 1st half of 2021). In detail, unit-linked contributions amounted to 31.5 billion euros (+8%). Contributions in euros amounted to 44.9 billion euros (−3%). The share of unit-linked contributions stood at 41% in the 1st half, compared to 39% for the whole of 2021. Still in the first half of the year, 64.3 billion euros were been paid (−€1.1 billion compared to the first half of 2021). Net inflows stood at +€12.1 billion, +€1.8 billion higher than in the first 6 months of 2021. It amounted to +€20.9 billion euros in UA and remains negative in euros (−8.8 billion euros).

Eurocroissance finally takes off!

In the first half of 2022, net inflows from EuroCroissance contracts amounted to 736 million euros. It is nearly three times higher than that recorded in the first half of 2021 (254 million euros). At the end of June 2022, the outstanding amount of eurocroissance funds was 5.4 billion euros (+44% over one year) for 351,000 contracts in progress (+19% over one year).

Rising rates, good news!

The rise in market interest rates is good news for euro funds. However, the rise in yields will take time, especially for the most widely subscribed euro funds. Here again, savers who do not adopt herding behavior will be the most rewarded.

According to Franck LE VALLOIS, Managing Director of France Assureurs: “ The choice announced by the European Central Bank to raise its rates by 0.5 points, a first since 2011, is good news for savers. Indeed, as the Governor of the Banque de France1 recently remarked, the rise in interest rates will enable insurers to change the composition of their portfolio with progressively more profitable assets. Insurers have all the tools they need to effectively manage the rate of rise in these rates. Life insurance, which has proven its solidity time and time again, therefore once again confirms its attractiveness. »


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