Savers withdrew more money than they deposited into their life insurance contracts in May, with a difference of about 1.6 billion euros, the first this year, according to data shared on Friday by France Assureurs.
He pointed to a “significant effect” of the calendar and the impact of bank holidays last month. The collection for the month of May 2022 was positive, with 1,900 million euros. The total contributions, that is, the amounts paid in contracts, amounted to 10.1 billion euros in May, while the benefits (which include redemptions and payments in case of death) amounted to 11.7 billion euros.
Life insurance “victims of the domestic madness for precautionary savings”
The detail of the supports is contrasting: the hemorrhage continues in the funds in euros (-3,300 million euros) when the investments in units of account (AU), potentially more profitable but also more risky, register in reverse a positive net inflow of 1,700 million euros.
According to him, “an end of the year with a drop in inflation could lead savers to return to long-term products.” “Life insurance should suffer,” adds the analyst who predicts “the next few months with mixed colors” for this savings product. The total outstanding balance of life insurance has increased slightly in a year, to 1.883 million euros, or a good third of French savings. The last month of negative net entries in life insurance dates back to last October, to a lesser extent than in May 2023.
During the first five months of the year, contributions continue to be higher than benefits, recalls France Assureurs, by 2.7 billion euros, carried by units of account. Since January, Livret A, a competing life insurance, has done much better: it has grown by 24.5 billion euros, nine times more. Its profitability is better: 3% net of taxes, compared to the 2% average for life insurance funds in euros, according to calculations by the Prudential Resolution and Control Authority (ACPR), not to mention taxation.
Source: BFM TV
