Life insurance: another 18 billion in outstanding went up in smoke in September
Unsurprisingly, life insurance outstandings fell by €18 billion during the month of September, despite payouts of more than €10 billion. France Assureurs confirms that net inflows were positive during the month of September and amount to 500 million euros. This decrease in outstanding is linked to the decrease in the valuation of units of account invested in the financial markets.
According to Franck LE VALLOIS, CEO of France Assureurs: “ Life insurance regained its positive momentum in September. This proves the confidence that the French continue to have in this savings product adapted to their life plans. The long-term financial management of insurance companies enables them to support policyholders in the long term by providing security for their savings. »
10.8 billion paid in September
Thus, France Assureurs indicates that life insurance premiums in September 2022 amounted to 10.8 billion euros. They decreased compared to September 2021 (-0.5 billion euros). Since the beginning of the year, they have reached 107.8 billion euros (-1.5 billion euros compared to the same period in 2021). In units of account (UA), they amounted to 42.4 billion euros, an increase of +0.6 billion euros compared to the same period in 2021. For the part in euros, they amounted to 65.4 billion euros, a decrease of 2.2 billion euros compared to the same period in 2021. The share of unit-linked contributions amounted to 39% since the beginning of the year, which ratio is identical to that recorded for the whole of 2021. Benefits amounted to 10.3 billion euros in September 2022 , an increase of +0.6 billion euros compared to September 2021 Since the beginning of the year, they have reached 95.2 billion euros, an increase of +1.0 billion euros. Unit-linked loans amounted to €15.4 billion, a decrease of €0.7 billion. For the part in euros, they reached 79.8 billion euros, an increase of +1.7 billion euros compared to the same period in 2021.
Savers too eager to invest?
While the stock market month of October is starting to pick up again (nearly 4% increase for the CAC40 last week), the September payments will show unrealized capital gains during the month of October.
The problem was that savers resumed their unit-linked payments from August. They therefore invested almost two months too early for those who invest in units of account influenced by the financial markets.
However, it should not be forgotten that half of the SCPI collection is done through life insurance ie. almost 570 million euros in payments, for the month of September alone according to our estimates (SCPI collection of 3.4 billion in Q3 2022). Thus, no less than billions of euros of these unit-linked payments relate to property support and are not affected by irregular movements in the financial markets.