PPBs share savers. Some are in favor of it and see in these provisions a guarantee of better returns in the coming years, others prefer to receive the entire profit sharing and thus be sure that their share will not be allocated to someone else. The fact is that these provisions (PPB) continue to accumulate over the years and savers have a hard time seeing their redistribution.
Increase in provisions? good or bad news?
This is not necessarily good news for savers, because everything that is set aside by insurance companies is equally that which does not end up in the products of the policyholders’ contracts. But the insurance companies try to play on published returns to smooth out any air pockets over the years. And of course they are increasingly cautious because the level of PPB (provisions for profit sharing) continues to grow. Another increase of +8.84% to reach 71.4 billion euros by the end of 2021. This starts at almost 3,000 euros per contract. When will this money finally be returned to savers?
Always more provisions year after year, +4.87% in 2021
At 65.6 billion euros at the end of 2020, the profit sharing provision (PPB) for life insurance increased by 5.8 billion euros in 2021, rising to 71.4 billion euros. Specifically, the average return level goes from 4.50% at the end of 2020 to 4.87% at the end of 2021, i.e. an increase of 37 øre.
TOP 5 PPBs
Not surprisingly, 5 life insurance companies alone account for 65% of the sector’s profit sharing (PPB).
| TOP | Insurance companies | PPB in amount at the end of 2021 (billions of euros) | PPB in % |
|---|---|---|---|
| 1 | CNP Assurances (La Banque Postale) | 14.97 billion euros | 6.10% |
| 2 | Predica (Credit Agricole / LCL) | 13.11 billion euros | 5.94% |
| 3 | ACM Vie SA and SAM (Crédit Mutuel Alliance Fédérale) | 6.23 billion euros | 7.34% |
| 4 | Cardiff Life (BNP Paribas) | €6.34 billion | 6.13% |
| 5 | Sogecap (Societe Generale) | €5.14 billion | 7.92% |
(Source: Good Value for Money website specializing in personal insurance and financial investments)
Collectively, these 5 insurance companies, all of which are subsidiaries of banking groups, have €45.8 billion. in provisions for profit sharing (PPB), which represents a return reserve of 6.37% relating to them at the end of 2021. To illustrate, the return of this reserve would allow these insurers to subsidize the rates paid on their customers’ funds in euros by 0.80% per annum over a period of 8 years. It is both a lot and a little in the current context of a sharp rise in interest rates.
PPB of insurance companies
| TOP | Life insurance companies | PPB as % of assets in euro funds | PPB amount in millions of euros |
|---|---|---|---|
| 🥇1 | FRPS APICIL PENSION SAVINGS | 21.30% | €38 million |
| 🥈2 | FRATERNAL LIFE FUND (CFV) | 8.66% | €16 million |
| 🥉3 | MILLEI’S LIFE | 8.47% | 141 million euros |
| 4 | AFI ESCA | 8.33% | €87 million |
| 5 | ACM SAM LIV | 8.26% | €907 million |
| 6 | CCMA PROVISION | 8.11% | €292 million |
| 7 | SUCTION CAP | 7.92% | €5,135 million |
| 8 | MATMU’S LIFE | 7.40% | €89 million |
| 9 | GPM INSURANCE | 7.22% | €54 million |
| 10 | ACM VIE SA | 7.21% | €5,327 million |
| 11 | UNOFI INSURANCE | 6.21% | €341 million |
| 12 | FMG LIFE | 6.20% | €1,350 million |
| 13 | BNP PARIBAS CARDIF LIFE INSURANCE | 6.13% | €6,344 million |
| 14 | CNP INSURANCE | 6.10% | €14,970 million |
| 15 | THE SERMON | 5.94% | €13,111 million |
| 16 | GENERATION LIFE ALLIANCE. | 5.90% | 55 million euros |
| 17 | MAAF LIFE | 5.66% | 596 million euros |
| 18 | CHAR | 5.42% | €497 million |
| 19 | MAIF LIFE | 5.33% | 561 million euros |
| 20 | PREPARATION OF LIFE | 5.21% | €303 million |
| 21 | MUTAVIE | 5.09% | €1,225 million |
| 22 | MMA LIFE SA | 5.07% | €957 million |
| 23 | HSBC LIFE INSURANCE | 4.97% | €806 million |
| 24 | AREAS OF LIFE | 4.91% | 52 million euros |
| 25 | FRPS MALAKOFF HUMANIS EXTRA PENSION MALA | 4.79% | 59 million euros |
| 26 | SMA LIFE BTP | 4.64% | €253 million |
| 27 | BPCE LIFE | 4.54% | €2,447 million |
| 28 | SURPLUS | 4.14% | €1,348 million |
| 29 | MACSF PENSION SAVINGS | 4.03% | €925 million |
| 30 | ANTARIUS | 4.00% | €369 million |
| 31 | ALLIANZ LIFE | 3.94% | €1,481 million |
| 32 | LIFE INSURANCE | 3.91% | €16 million |
| 33 | CAPMA & CAPMI | 3.85% | €148 million |
| 34 | AG2R WORLD | 3.73% | €2,192 million |
| 35 | NINEFLIZE LIFE | 3.59% | €182 million |
| 36 | THE MUTUAL INSURANCE CONSERVATOR | 3.43% | €83 million |
| 37 | MUTUALIST FRANCE | 3.41% | €242 million |
| 38 | CAR LIFE | 3.40% | €1,073 million |
| 39 | ORDINARY LIFE | 3.29% | €2,281 million |
| 40 | MIF | 3.17% | €116 million |
| 41 | CAREFUL LIFE | 3.01% | €105 million |
| 42 | EMPIRE | 2.77% | €19 million |
| 43 | FOURTH MALAKOFF | 2.65% | €108 million |
| 44 | AGEAS FRANCE | 2.60% | €63 million |
| 45 | BEE PENSION SAVINGS | 2.59% | €559 million |
| 46 | SWISSLIFE INSURANCE AND HERITAGE | 2.48% | €437 million |
| 47 | SAF BTP LIFE | 2.48% | €89 million |
| 48 | ORADEA LIFE | 2.38% | €76 million |
| 49 | AUXIA MALAKOFF MEDERIC | 2.36% | 24 million euros |
| 50 | FRPS ALLIANZ PENSION | 2.30% | €267 million |
| 51 | AXA MUTUAL LIFE INSURANCE | 2.23% | €124 million |
| 52 | GROUPAMA GAN LIFE | 2.16% | €808 million |
| 53 | MONCEAU PENSION AND SAVINGS | 1.99% | €6 million |
| 54 | GENERAL PENSION FUND (CGP) | 1.88% | €140 million |
| 55 | FRPS BEE PROFESSIONAL PENSION | 1.86% | 64 million euros |
| 56 | AXA FRANCE LIFE | 1.83% | €1,564 million |
| 57 | APICIL SAVINGS | 1.72% | €82 million |
| 58 | SPIRICA | 1.43% | €80 million |
| 59 | MUTEX SA | 1.00% | €35 million |
| 60 | WORLD PARTNERS | 0.70% | €131 million |
| 61 | SAGEVIE | 0.62% | €1 million |
| 62 | OPTIMUM LIFE | 0.60% | €1 million |
| 63 | MADDER | 0.50% | €17 million |
| 64 | FRPS ARIAL CNP ASSURANCES AG2R LA MONDIALE | 0.49% | €63 million |
| 65 | FRPS AXA COMPANY PENSION | 0.06% | €5 million |
| List of PPBs by insurance company, data at the end of 2021. (Data source: Good Value for Money website) | |||
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