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Life insurance continues to gain momentum

In March 2021, net life insurance inflows were positive at +€1 billion. Net inflows of unit-linked products amounted to +€2.1 billion, thereby contributing to financing the productive economy necessary for the recovery of our country.

The momentum of life insurance remains favourable to net inflows of unit-linked products

Net inflows in March 2021 were positive at +€1.0 billion. They amounted to +€4.4 billion in the first quarter. In unit-linked products, net inflows were higher, reaching +€2.1 billion in March and +€7.7 billion since the beginning of the year.

Premiums in March 2021 stood at EUR 12.7 billion, up +40% compared to the same month in 2020, due to the impact of the first lockdown on sales networks. On a more comparable basis, they are also up by +3% compared to March 2019, a sign of the good performance of life insurance despite the health crisis.

The share of unit-linked insurance (ULIP) in premiums was 37% for the month of March. The product mix increasingly in favour of unit-linked products is continuing to progress, with 36% since the beginning of the year (34% in 2020), thus supporting investment in corporate assets.

Benefits paid out in  March 2021 amounted to +€11.6 billion. They are higher than in March 2020 (EUR 11.3 billion).

At the March 2021, outstanding life insurance contracts amounted to €1,812 billion showing 4% growth year-on-year.

The retirement savings plan market continues to grow

In March 2021, the market for retirement savings plans (RSPs) marketed by insurance companies continued to grow: 89,000 additional policyholders (including 25,000 from transferred contracts) and just over €1 billion paid out (including €0.6 billion from transfers). New production shows particularly dynamic triple-digit growth compared to March 2020: +156% to 64,000 for new policyholders and +326% to €443 million for contributions. At the end of March, outstanding RSPs already amounted to circa EUR 18 billion.

For Franck Le Vallois, Managing Director of the French Insurance Federation:

Thanks to the renewed momentum of life insurance over the past few months, insurers are providing increasing support to companies and, through them, to the country’s economic recovery. With 60% of life insurers’ investments in corporate assets, no less than EUR 1,400 billion are injected into financing the productive economy. The ‘Relance Durable France’ programme, the promotion of ‘Relance’-labelled funds and the launch of the ‘Relance’ Equity Loan Fund are the hallmarks of the driving role of insurance for the economic recovery.”