From the start of the year, insurance companies collected €72.7 billion in premiums (compared to €97.5 billion over the same period in 2019). Payments to unit-linked products accounted for €25.0 billion, i.e. 34% of premiums.
Insurance companies paid out benefits of €79.3 billion(€79.5 billion over the same period in 2019).
Net inflows of the first eight months of the year were -€6.5 billion (compared to €18.0 billion over the same period in 2019).
At the end of August 2020, in-force life insurance business (mathematical provisions + profit sharing provisions) stood at €1,761 billion.
Life insurance confirms its essential role in financing the economy, despite the crisis
Although life insurance has seen a significant outflow since the beginning of the year, compared to 2019, the figures published today reveal the very good performance of unit-linked premiums, which make a major contribution to financing companies.
Despite the sharp decline observed over the period from January to August 2020, due to a reduction in the activity of the commercial networks, unit-linked subscriptions are proving dynamic, reaching nearly €2 billion more than over the same period in 2019.
This increase in unit-linked premiums in spite of the current backdrop, is particularly concentrated on equities, supporting companies’ equity capital. It reflects the ever-increasing support of life insurance in financing the economy. It should be remembered that around 60% of outstanding life insurance policies (i.e. more than €1,000 billion) are devoted to financing companies.
In addition, the Retirement Savings Scheme (Plan d'Epargne Retraite - PER), which has been on the market for almost a year, is continuing to grow at an ever-increasing pace, and the assets under management of Insurers have already reached €2.7 billion.
“With unit-linked premiums holding up well, and the promising results of the PER, French insurers are confirming their major role in financing the economy. They are reaffirming their commitment to support the country’s economic recovery alongside the public authorities, by continuing to implement their €1.5 billion investment programme called ‘Assureurs- Caisse des Dépôts Relance Durable France1‘.” said Florence Lustman, President of Fédération Française de l’Assurance.
1 Insurance - Caisse des Dépôts Sustainable Recovery in France