Thursday, December 1, 2022
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Life insurance accelerates on unit-linked

In an effort to offset inflation, managers are investing record amounts in these risky assets


In the uncertain macroeconomic environment, life insurance is undoubtedly the financial product of choice for French savers. Despite a slight slowdown observed since the beginning of last summer, the collection of funds allocated to this type of investment should actually reach a level this year comparable to, if not higher than, 2021, around 150 billion euros. However, note an important difference: for several months, the share of amounts invested in unit-linked contracts has continued to grow to the detriment of traditional euro bond funds.

The most likely explanation in this period of strong price increases: the hope of maintaining purchasing power thanks to a higher return on the amounts invested. This is confirmed by the survey carried out by Ifop last June on behalf of the online brokerage platform Altaprofits, according to which the French consider investment in units of account as the second “safe haven” against inflation, behind real estate but ahead of gold. and stock markets.

“For several months, the share of amounts invested in unit-linked contracts has been steadily increasing to the detriment of euro bond funds”

Traditional euro funds have been the heart of life insurance for many years and today still represent almost 80% of total assets. But they are starting to lose a good deal of their appeal. Gone are the days when, in addition to guaranteeing the capital invested, they offered savers almost instant availability and a rate of return that was often higher than the rate of inflation. Today, due to the continued decline in interest rates across all bond markets over the past few years, they served up an average dividend last year of 1.3% on average last year. And although insurers, by using some of their reserves, hope to hand out a coupon close to 2% for the 2022 financial year, we are far from […]

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