The total outstanding amount of this investment, popular with French savers, reached a new record at 1,985 billion euros at the end of November.
Savers deposited 4 billion euros more in November than they withdrew from their life insurance contracts, something not seen since July 2010, according to data published Monday January 6 by the professional federation. The general director of France insurers Paul Esmein welcomed during a conference call the “continuation of the very good trajectory that we have observed for many months”.
In detail, contributions (sums paid on contracts) reached 15.1 billion euros (+18% over one year). The level of benefits (which include buyouts and payments in the event of death) at the same time showed a drop of 11%, to 11.0 billion euros. The balance between the two, says “net collection”rounded to 4 billion euros, is also the best November since 2006. Since the start of the year, life insurance contract holders have deposited 28.2 billion euros more than they did not withdraw any, bringing the total outstanding to 1985 billion euros at the end of November, a record.
The favorite investment of the French
Life insurance remains one of the favorite investments of the French, with an average capital of around 100,000 euros per subscriber. The year 2024 marks a return to favor for this investment, after a passable 2023 vintage, penalized by competition from savings products at attractive rates, including the Livret A and its 3% net.
The first rates of return on euro funds announced for 2024 – 3.75% for Ampli Mutuel, 3.5% for Garance, both stable – should toughen competition in 2025, faced with an expected drop in Livret A “around 2.5%”according to the new Minister of the Economy Éric Lombard. However, these insurance rates are gross of social and tax contributions, unlike the Livret A.
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