Life insurance: unit-linked and eurocroissance attract more than funds in euros

If funds in euros present little risk, they are also not very profitable. Consequently, savers tend to focus more on unit-linked products. What alternatives to funds in euros are attracting more and more French people?

According to the latest figures published on Wednesday by France Assureurs, the French insurance federation, the preferred savings product of the French is doing well. In the first half of 2022, life insurance premiums thus regain their highest level since 2010with 76.4 billion euros.

Over the first six months of 2022, the net inflow oflife insurance, ie deposits less withdrawals, is higher than in the first half of last year and stands at 12.1 billion euros. In June alone, the latter increased by 0.6 billion euros.

Two options seem to be attracting more and more savers

Positive and encouraging results, partly due to the supports in units of account (UA), contributing 3.2 billion euros to net inflows in June and 20.9 billion in the first half of 2022. Penalized by persistently low returns, funds in euros are struggling to seduce and investment continues to fall. Result: -8.8 billion euros over the first six months of the year, and -2.6 billion euros over the month of June.

Unit-linked funds are not the only successful life insurance vehicles: eurocroissance funds are also on the rise. According to France Assureurs, net inflows from Eurocroissance contracts reached 736 million euros for the first six months of 2022 and outstandings stood at 5.4 billion euros in June (+44% over one year) for a total 351,000 open contracts (+19% over one year).

In parallel, the Retirement Savings Plan (PER) continues to attract new savers. The PER market recorded 577 million euros in contributions in June, an increase of 16% over one year. According to France Assureurs, there would be 3.4 million policyholders holding a PER, for a total outstanding amount reaching 41.4 billion euros. “In total, the PER market marketed by insurance companies thus recorded payments of 903 million euros in the month of June 2022 and 11.1 billion euros since the start of 2022” specifies the Federation.

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