Life Insurance Inflows Exceed Withdrawals in April, Returning to Early 2023 Levels

Deposits by savers in April on their life insurance contracts exceeded their withdrawals by around 1.3 billion euros, France Assureurs said on Thursday, returning to levels at the start of the year after the low of the previous month. . In March, life insurance recorded net inflows (difference between deposits and withdrawals) of 360 million euros, much less than in January and February, at 1.2 billion and 1.1 billion respectively. euros. By way of comparison, the Livret A account benefited in April from net inflows of 2.33 billion euros, or about twice as much as life insurance over the same period.

In detail, all the contributions, that is to say the sums paid on the contracts, totaled in April 13.8 billion euros (+ 10.4% compared to April 2022), while benefits (which include redemptions and payments in the event of death) amounted to 12.5 billion euros (+21.4% over one year). “Life insurance continues to develop,” said the managing director of France Assureurs, Franck Le Vallois, at a press conference, stressing that “this dynamic has been observed since the beginning of the year”, with an increase in contributions compared to the first four months of 2022 of 2.6 billion (i.e. +4.9%).

However, as for several months now, funds in euros, a traditional insurance product whose capital is guaranteed, experienced outflows in April, amounting to 2.3 billion euros. This was offset by positive net inflows of 3.6 billion euros for investments in units of account (UA), potentially more profitable but also more risky. Since the beginning of the year, outflows from euro funds have reached 9.1 billion euros, said France Assureurs. Over one year, total life insurance outstandings increased by 2.5% to €1.9 billion.