Life Insurance: Good Deals
Despite the deteriorating economic environment, life insurance development remained well directed in June, according to France Assureurs. In fact, in June, life insurance payments amounted to 11.9 billion euros. But the biggest surprise is the percentage paid on the units of account. In fact, while the financial markets were in turmoil, savers were not afraid and bet the market would turn. With this, payments on units of account amounted to €5 billion in June, representing 42% of payments, which is a very high level. Was this really the right time to invest in units of account? Time will tell, but the July recovery is an excellent sign. The beginning of the school year can be completely different.
So the Euro funds raise 6.9 billion euros on their side (look at the best Euro funds, without restrictions). Unpaid life insurance contracts amounted to 1,821 billion euros at the end of June.
Interest also decreased during the month compared to last year, at €11.3 billion (€0.7 billion compared to June 2021). As a result, net inflows were +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 first half of 2022, premiums for life insurance reached a level not seen since 2010, at €76.4 billion (+ €0.7 billion compared to the first half of 2021). In detail, unit-related contributions amounted to €31.5 billion (+8%). Contributions in euros amounted to 44.9 billion euros (3%). The share of unit-related contributions was 41% in the first half, compared to 39% for the whole of 2021. Still in the first half of the year, 64.3 billion euros were paid (- 1.1 billion euros compared to the first half of 2021). Net inflows amounted to +12.1 billion euros, +1.8 billion euros more than in the first six months of 2021. It amounted to +20.9 billion euros in UA and remained 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. It is almost three times higher than what was recorded in the first half of 2021 (€254 million). At the end of June 2022, the amount owed to the eurocroissance funds was 5.4 billion euros (+44% over one year) compared to 351 thousand contracts in progress (+19% over one year).
High prices, good news!
The rise in market interest rates is good news for Euro funds. However, it will take some time for the returns to rise, especially for the more widely subscribed Euro funds. Here again, savers who do not adopt a herding behavior will be the most rewarded.
According to Franck Le Valois, General Manager of France Assureurs: “ The option announced by the European Central Bank to raise interest rates by 0.5 point, the first since 2011, is good news for savers. Indeed, as the Governor of Banque de France 1 recently noted, higher interest rates will enable insurance companies to gradually change the composition of their portfolio with more profitable assets. Insurance companies have all the tools you need to effectively manage the rate at which these rates are rising. Life insurance, which has repeatedly proven its durability, once again confirms its attractiveness. »