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Investments: life insurance posts the best October in its history in France

With a net inflow of 2.7 billion euros in October, life insurance has been more successful since September 2019 and the best October in its history, according to data released Tuesday by the French Federation of L ‘assurance. In detail, contributions (or deposits) reached 13.2 billion euros, “a record level for the month of October” and benefits (or withdrawals) 10.5 billion euros, according to a press release. These figures contrast with those of the livret A which, in October, experienced its greatest disaffection since the end of 2014, with a differential of 2.83 billion euros between deposits and withdrawals.

If it is “difficult to project”, “one can think that by gaining all the same a little in visibility, the French have expressed or reformulated medium and long term projects”, judged during a presentation to the press Franck Le Vallois, Director General of the FFA. At the start of the Covid-19 epidemic, and until fairly recently, life insurance suffered particularly in favor of the livret A, the French preferring to have quickly available savings. While the livret A is currently only remunerated at a rate of 0.5%, a historic low, “the inflationary context” could also play in favor of life insurance, said Mr. Le Vallois.

Support in units of account (UC), more profitable but more risky than so-called funds “in euros” whose capital is guaranteed, continue to register “new records, month after month”, also noted the federation. “For the month of October, life insurance in UC sets new records in terms of contributions (5.0 billion euros) and net inflows (+ 3.4 billion euros)”, details the FFA . In a context of low interest rates, insurers are encouraging savers to diversify their investments and to turn to units of account, to the detriment of funds in euros. At the end of October 2021, outstanding life insurance contracts reached 1,861 billion euros, an increase of 6% over one year.

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