2023-09-29 17:59:00
This is a first in at least twenty years. Over the past two decades, the remuneration of life insurance funds in euros has only eroded due to falling interest rates. This period is well and truly over. The return on this guaranteed capital product rose to 1.91% in 2022 on average, a significant increase compared to 2021. Logic: last year, French ten-year rates rose from 0 to 3%. in a few months. “We are investing today at a rate higher than the average rate of our stock of bonds, which improves the return on our assets,” rejoices François Codet, CEO of BPCE Assurances. “And this movement should gradually accelerate.”
Insurers will improve their rates
The consequences are less favorable for securities already in the portfolio. In fact, insurers have built up colossal stocks of very low-paying bonds, which have seen their value fall with the rise in rates. Another consequence of the change in environment: savings accounts and term accounts are becoming very attractive again. “The context has the merit of reminding us that bank savings are made for short-term investments and life insurance for the long term,” underlines Eric Rosenthal, deputy general manager of savings and financial services at Apicil.
The commercial discourse of companies has also evolved significantly: many insurers are seeking to attract new money to euro funds. And, for this, they should continue to improve their rates. “Obviously, the 2023 yield will be higher than that of 2022,” assesses François Codet. At the same time, bonus policies, aimed at better remunerating savers holding units of account, should increase. To do this, companies can count on improving market conditions but also on reserves accumulated in recent years.
Should we therefore rush into the euro fund? “With the increase in his remuneration, there could be a greater investment in it to the detriment of the units of account…”, anticipates François Codet. And yet… With inflation still high (+4.3% over one year last July [à actualiser SVP avant bouclage, vers le 18 septembre]), the net gain – once the price increase is deducted – remains negative. “Moreover, even if rates rise to 3%, it is possible to obtain a higher level with a diversified allocation including stocks, bonds, real estate, etc.,” assures Eric Rosenthal. The return to a more attractive return on this type of support should therefore not sound the death knell for risk-taking.
Room for newcomers
What could be better than a new euro fund to take advantage of a favorable context, with higher interest rates, without having a bulky stock to manage? This opportunity has not escaped the attention of a few companies who have stepped into the breach.
Thus, from February, the specialist for independent and liberal Ampli Mutuelle launched a single-support contract, in which savers have exclusive access to a fund in euros. The mutual has communicated a return objective of between 3.5% and 4% net of management fees.
The property management company Corum followed suit in early July. After creating its insurance company and launching its Corum Life life insurance contract in March 2020, the company also acquired a fund in euros. “In terms of remuneration, we have the long-term ambition to do better than the Livret A, the rate of which is currently 3%,” promises Amandine Lezy, its director. In addition to good quality bonds, the euro fund will be boosted by high-yield securities and in-house SCPIs. SwissLife should follow in the footsteps of these two players at the end of the year with a new offer.
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