The valuation of insurance companies’ securities fell by 82 billion.

At the end of September 2022, the outstanding financial investments of insurance companies amounted to 2,501 billion euros, which is a significant decrease of -73 billion euros in the third quarter.

The decrease is explained by a significant negative revaluation of assets (-82 billion), which is mitigated by positive net investment flows (+9 billion).
The new increase in long-term interest rates (+76 basis points for the 10-year OAT in the third quarter of 2022) reduced the valuation of long-term debt securities (-63 billion). The fall in the stock markets (-3% for the CAC 40 in the third quarter) also reduced the valuation of listed shares (-4 billion). The deterioration of the stock and bond markets also had consequences for the valuation of non-monetary funds, which also fell (-15 billion, of which -7 billion for equity funds and -3 billion for bond funds).
Positive net investment flows are the result of a high level of net loan flows (+8bn), especially intra-group loans of +5bn.

They can also be explained by net purchases of short-term debt securities (+6 billion) and an increase in deposits (+6 billion). The net turnover of securities (-10 billion) is due to shares of money market funds (-13 billion) and to a lesser extent long-term debt securities (-7 billion).