Savings: a record amount deposited in life insurance policies in France in the first half of the year
French savers, driven to save by the uncertain economic climate, deposited €97.8 billion into their life insurance policies in the first half of the year, an unprecedented amount, according to data published Thursday, July 31, by France Assureurs.
At the same time, benefits paid by insurers, in the event of redemption by savers or distribution to beneficiaries in the event of death, fell by 7% over one year, to 71.2 billion euros.
It's the perfect combination for insurers: the difference, called net inflows, reached an amount not seen since 2010 for the first half of the year, at €26.6 billion. Paul Esmein, CEO of France Assureurs, highlighted the "good momentum in life insurance, which continues and has continued throughout the half-year" on Thursday during a conference call.
This net life insurance balance masks a contrasting reality between investment vehicles. On the one hand, unit-linked (UC), riskier but potentially more profitable investments, saw net inflows of €23.8 billion. On the other hand, euro-denominated funds, with capital guarantees, increased by only €2.9 billion.
The total outstanding life insurance even had the luxury of exceeding the 2,000 billion euro mark for the first time in January: at the end of June it stood at 2,052 billion euros.
Life insurance remains, by far, the most valuable investment in France. It represents approximately one-third of French people's financial savings, with an average capital of around €100,000 per policyholder.
Regulated savings, another important source of cash for the French, were unable to compete in the first half of the year. The outstanding amount of Livret A savings accounts increased by barely €3 billion between January and June, according to the latest data from the Caisse des Dépôts (French Deposit Fund), nine times less than life insurance.
The drop in the Livret A rate on August 1, from 2.4% to 1.7%, should further disadvantage the match between these two savings families.
La Croıx
