With EUR 13.7 billion of contributions and EUR 3.4 billion of net unit-linked inflows, life insurance reached all-time highs in June 2021
In June 2021, life insurance reached levels not seen in over 10 years:
- €13.7 billion in contributions month-on-month, more than €77 billion in the first half,
- Net inflows in unit-linked products reached +€3,4 billion in June and almost +€19.3 billion in H1.
The June figures for the life insurance market confirm the trend that has been observed for several months: a growing share of unit-linked investments and the quick growth of Retirement Savings Plans (RSP).
A record month for life insurance...
Life insurance net inflows for the month of June 2021 were positive at +€1.4 billion, exceeding the €1-billion threshold for the sixth month in a row. In the first half of 2021, cumulative net inflows amounted to +€10.9 billion.
In June 2021, contributions reached a record level: €13.7 billion, compared to €9.9 billion in June 2020 and €12.1 billion in June 2019. Cumulative contributions for the first 6 months of the year amounted to €77.1 billion (€54.3 billion from January to June 2020 and €74.0 billion for the same period in 2019).
In addition, the benefits paid out in June 2021 (€12.3 billion) were also greater than those paid out in June 2020 (€10.3 billion) and those paid out in June 2019 (€10.1 billion). Year-to-date benefits totalled €66.2 billion, up €8.3 billion from the same period in 2020, and up €6.2 billion from the first six months of 2019.
At the end June 2021, outstanding life insurance contracts amounted to €1,840 billion showing +4.4% growth year-on-year.
... which confirms the market trend towards a new balance between euro funds and unit-linked investments.
Unit-linked contributions amounted to €5.6 billion in June, representing 41% of life insurance contributions, compared with an average of 38% since the beginning of the year and 35% in 2020.
Net unit-linked inflows amounted to +€3.4 billion in June 2021.
In the first half of the year, unit-linked products reached all-time highs with a cumulative total of EUR 29.6 billion in contributions and net inflows of EUR 19.3 billion.
This steady increase in unit-linked products confirms the intention of the French to diversify their savings: massively invested in the productive economy (83% in total: 57% in equities, 17% in corporate bonds and 9% in corporate real estate), unit-linked policies now account for more than a quarter of life insurance assets under management.
... and the success of Retirement Savings Plans
The RSP market continued to grow in June 2021 with 82,000 additional policyholders (including 64,000 new policyholders and 18,000 from transferred policies). In the first half of 2021, RSPs recorded 668,000 new policyholders (407,000 for new RSPs taken out and 260,000 from transferred contracts).
In June 2021, €937 million were paid into the RSPs, including €454 million in contributions (+188% compared to the same month in 2020) and €483 million in transfers from other retirement savings policies.
Cumulative net inflows to RSPs in H1 2021 amounted to +€1.9 billion (vs €3.0 billion for the whole year in 2020).
At the end of June, RSPs reported nearly 1.9 million policyholders. Assets under management amounted to nearly EUR 21 billion. Half of the contributions are made of unit-linked investments.
For Franck Le Vallois, Managing Director of the French Insurance Federation: “The life insurance market was shaped by a new trend in the first part of the year. Retail investors seek to further diversify their life insurance to improve their expected returns. This requirement is contributing to the momentum of unit-linked inflows and is leading to a new balance with euro-denominated products, which is being reinforced by the strong development of RSPs”.