Categories: Business

The Euro Fund will reduce the weight of life insurance savings in 2023

This slowdown contrasts with the success of Livret A, which netted more than 28 billion euros last year.
Katleho Seisa/peopleimages.com/stock.adobe.com

Faced with massive outflows of Euro funds, more and more savers are losing interest in these investments.

The French’s favorite investment ended the year on a bad note. In 2023, the net outflow (savings minus withdrawals) from life insurance was barely positive, at 2.4 billion euros. “This is the smallest collection in life insurance and the third lowest since 1997,” notes Philip Crevel, director of Savings Circle.

The main reason? Huge outflows from funds in euros (-27.6 billion euros in 2023). This investment with 100% guaranteed capital has been hit hard by competition from Leverate A, which offers 3% net yield, and other savings products (term accounts, popular savings book, etc.) that have increased their returns. rates “Savers were quite practical, even opportunistic, to put their money where it would earn the most”underlines Philip Crevel.

2024, the end of the trend

Not only that, difficulties in accessing credit have forced the French to dip their funds into euros, raising more capital during property purchases. Inflation, which has penalized household finances, has undoubtedly forced some to dip into these pockets of available savings at any given time. Life insurance saved its year thanks to unit-linked collections (the unguaranteed portion invested in the financial market), which was clearly positive, at around 30 billion euros.

2024 nevertheless promises to be under better protection for life insurance, thanks to higher remuneration for funds in euros (2.5% on average and more than 3% for the best). Life insurance products outstanding also reached a record level of 1,923 billion euros at the end of December.

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