Life insurance contracts registered a net inflow of 0.5 billion euros in September, three times less than in the same month last year, according to figures released on Friday by France Assureurs. However, it is slightly better than the month of August 2022, when life insurance had registered a net outflow: The amounts paid out had then exceeded deposits by 700 million euros.
In detail, all contributions, i.e. the amounts paid in, amounted to 10.8 billion euros in September, i.e. 0.5 billion less than last year at the same time, while benefits (which include redemptions and payouts in the event of death) amount to 10.3 billion: that is 0.6 billion more than in September 2021. Euro funds, whose capital is guaranteed, are particularly affected by this discontent, with a net outflow of 2 billion euros last month. They have seen their yields melt in recent years, weighed down by the continued decline in rates. And with the revaluation of Livret A, which rose to 2% on 1 August, many Euro funds have become much less attractive than this savings product.
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Since the beginning of the year, Euro funds have suffered a real hemorrhage, with an outflow of 14.4 billion euros. Unit-linked units (UC), potentially more profitable but also riskier, have registered net inflows of €27.0 billion since January. Unlike Euro funds, the amounts invested in unit-linked funds are not guaranteed. Their current performance, like that of the markets that have been severely shaken since the beginning of the year, does not plead for them. Life insurance savers have thus seen €68 billion disappear from their portfolios since the start of the year despite positive net inflows (euro and unit-linked funds combined). At the end of September, total life insurance outstandings stood at 1.808 billion euros, compared to 1.876 billion at the end of December 2021.
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