Deposits in life insurance contracts exceeded withdrawals by 1.2 billion euros in January, according to figures published on Thursday by France Assureurs, an amount that nearly tripled in a year in part due to fierce competition from Livret A. In January 2022, life insurance contracts had increased by 3 billion euros.
The set of contributions, that is, the amounts delivered in the contracts, amounted to 14.1 billion euros, while the benefits (which include redemptions and payments in the event of death) amounted to 12.9 billion euros. The detail of the supports is contrasted: the funds in euros suffered an outflow of 2,500 million euros when the investments in units of account (AU), potentially more profitable but also more risky, registered a net inflow of 3,600 million euro. The total outstanding balance of life insurance is stable over a year: it stood at 1,871 million euros at the end of January, or a good third of the savings of the French.
Increase of more than 9,000 million euros in the outstanding balance of livret A in January
Traditionally associated with New Year’s gifts, bonus payments, and a time of lower spending in contrast to December, the first month of the year is generally conducive to saving. Livret A has also taken the opportunity to refuel. Their outstanding balances increased by more than 9 billion euros in January, the Caisse des dépôts (CDC) said on February 21. For the rest, the amount is greater than that of life insurance despite a base (375,000 million euros for Livret A) five times less.
With expected returns averaging just under 2% for the past year, life insurance suffers compared to the Livret A, whose rate of return has been a net 3% since February 1. Some 18 million people have life insurance, which means an average capital of about 100,000 euros per subscriber, often invested in various contracts.
Source: BFM TV
