Investments: the total outstanding amount of life insurance approaches 2,000 billion euros, a record

Net inflows from life insurance in the last month of November reached a level not seen in nearly 15 years.

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.

Since the start of the year, life insurance contract holders have deposited a total of 28.2 billion euros more than they have withdrawn,

bringing the total outstanding amount to a record amount of 1.985 billion euros at the end of November.

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, known as “net collection”, rounded to 4 billion euros, also presents itself as the best November since 2006.

The Livret A will fall significantly “around 2.5%”

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 mutual, 3.5% for Garance, both stable – should toughen the competition in 2025, facing 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.