Life Insurance: A Record November in Terms of Net Premiums
November marked a historic turning point for life insurance, with net inflows of 4 billion euros—a figure not seen since July 2010—according to figures released by the industry association on January 6.
Exceptional momentum in 2024
Since the beginning of the year, savers have contributed 28.2 billion euros more than they have withdrawn, bringing the total value of life insurance policies to a record high of 1,985 billion euros at the end of November.
Paul Esmein, CEO of France Assureurs, highlighted during a conference call the “remarkable continuity of this positive trend, which has been ongoing for several months.”
Key figures for November
Premiums on life insurance policies—that is, the amounts paid by policyholders—totaled 15.1 billion euros, marking an impressive 18% increase compared to last year. At the same time, payouts—including policy surrenders and death benefits—declined by 11%, totaling 11 billion euros. The difference between these two amounts—known as “net inflows”—thus reached 4 billion euros, marking the best November since 2006.
Life Insurance vs. Livret A: A Renewed Competition
Life insurance remains a favored investment among the French, with an average portfolio value of around 100,000 euros per policyholder. After a mixed 2023, marked by increased competition from high-yield savings products such as the Livret A (3% net), 2024 seems to be reconciling savers with this savings product.
The initial returns announced for euro-denominated funds in 2024 show promising stability: 3.75% for Ampli Mutuelle and 3.5% for Garance. Although these figures do not include social security contributions or taxes, they position life insurance favorably in the face of a likely decline in the Livret A interest rate, estimated at “around 2.5%” according to Economy Minister Éric Lombard.
With record net inflows and competitive returns, life insurance is solidifying its status as an essential investment in the French financial landscape. Despite pressure from alternatives offering guaranteed rates, it continues to attract investors thanks to its flexibility and robust performance.
