The recovery momentum in the life insurance sector continues in February 2021
Despite an uncertain economic and financial environment, net life insurance inflows in February 2021 were positive at +€1.6 billion. Unit-linked net inflows amounted to +€2.8 billion. France’s favourite investment confirms its key role in financing the French economy.
The gradual improvement in net inflows is confirmed
Net inflows in February 2021 were positive at +€1.6 billion. In February 2020, net inflows amounted to +€1.3 billion.
February 2021 contributions are up +8% year-on-year, amounting to €12.1 billion (vs €11.1 billion in February 2020).
The amount of benefits paid out in February 2021 (€10.5 billion) was greater year-on-year (vs €9.8 billion in February 2020).
At the end February 2021, outstanding life insurance contracts amounted to €1,795 billion showing 1.4% growth YoY.
French people’s savings are contributing to financing companies and the recovery of the French economy
The share of unit-linked products in contributions stood at 38% in February, 36% YtD (34% in 2020) and confirms the evolution of the euro/unit-linked product mix observed throughout 2020, which is even more favourable to the financing of the productive economy.
Unit-linked net inflows in February were positive, at +€2.8 billion, bringing the year-to-date total to €5.6 billion.
In February 2021, the market for retirement savings plans (RSPs) marketed by insurance companies also maintained its momentum: 68,000 additional policyholders (including 17,000 from transferred contracts) and €879 million paid out (including €557 million from transfers). New production shows dynamic growth compared to February 2020: +51% for new pension plans taken out to 51,000 and +125% for contributions to €322 million.
This data is good news for the French economy as unit-linked products and the RSP market contribute significantly to the financing of companies. 83% of the units-linked funds finance companies.
At the same time, insurers are particularly committed to the recovery through the implementation of the €2.3 billion Relance Durable France programme. They also invested €3.8 billion in funds with the ‘Recovery’ label: as of 31 December 2020, 33 life insurers were marketing these funds (46 of the 58 funds in the insurers’ portfolios are unit-linked).
For Franck Le Vallois, Managing Director of the French Insurance Federation : “The momentum observed in life insurance for several months now, particularly with regard to unit-linked inflows, is an important signal in the context of an economic recovery. With almost EUR 1,300 billion of inflows, life insurance is the lifeblood of our country’s economy. It is in fact essential for investment in our companies and for the financing of our country’s productive economy.”