Life insurance premiums totaled 28.7 billion in five months, leaving the Livret A savings account in the dust
Driven by unit-linked policies and the wave of older home savings plans reaching maturity, the life insurance sector has had a strong start to 2026—one that the Livret A savings account, which is experiencing a sharp outflow of funds, can no longer keep up with.
At banks and insurance companies, the hierarchy of household savings is now crystal clear. While the Livret A saw outflows of 5 billion euros over the first five months of the year, life insurance continued to attract capital. In May, net inflows reached 4 billion euros, according to figures from France Assureurs cited by the Cercle de l’Épargne. This is 0.3 billion higher than in May 2025, down from April’s peak of 5.2 billion, but well above the average for the past ten years, which stands at 1.4 billion.
The French people’s preferred investment is benefiting from an environment that works against regulated savings and time deposits—which are considered to offer low returns—at a time when households’ propensity to save remains high. Over five months, net inflows climbed to 28.7 billion euros, up 7.3 billion from a year ago. Unit-linked funds accounted for the bulk of this, with 21.6 billion, compared with 7.1 billion for euro-denominated funds. This trend should be viewed in the long term: since the start of the century, May has seen only three instances of outflows—in 2012, 2020, and 2023—each amounting to less than 2 billion euros. The year 2026 thus stands in stark contrast to these periods of decline.
Unit-linked funds drive inflows
The monthly breakdown confirms the leading role of equity and bond funds. Of the 4 billion in net inflows, 2.8 came from unit-linked funds and 1.2 from euro-denominated funds. Gross contributions, meanwhile, remained stable at 14 billion euros, the same level as in May 2025: contributions to euro-denominated funds rose by 1%, while those to unit-linked funds fell by 3%. Since January, these contributions have totaled 88.5 billion, up 7.8 billion—10% more than a year earlier—with the increase split between unit-linked funds, up 11%, and euro-denominated funds, up 9%. The share of unit-linked funds in these contributions stood at 34% in May and 38% year-to-date.
On the outflow side, payouts in May totaled 10 billion euros, down due to a 5% decline in euro-denominated funds, while redemptions in unit-linked funds remained stable. Over the five-month period, these payouts reached 59.8 billion euros, up by only 1%, as the slight increase in unit-linked funds offset a slowdown in euro-denominated funds. The combination of strong inflows and modest outflows pushed the total outstanding value of policies to 2,162 billion euros at the end of May, up 5.7% year-over-year—an increase of nearly 120 billion euros over the past twelve months. The renewed dominance of unit-linked funds in inflows signals, incidentally, a greater willingness to take risks among savers, contrary to the traditional preference for the security of euro-denominated funds.
The Pool of Old PEL Accounts
A pool of funds is still awaiting life insurance. The Cercle de l’Épargne points to the reallocation of housing savings plans that are more than fifteen years old and have matured. Between 2026 and 2030, 3.2 million PEL accounts will be affected, representing a total balance of 93 billion euros—a windfall that some savers will likely redirect toward life insurance policies as these older plans lose their tax benefits and original returns. This gradual shift of long-term savings toward life insurance could fuel premium inflows for several years, as these generations of plans sitting on banks’ books seek a new destination.
Given this trend, the expected increase in the Livret A rate—which is set to rise by 0.3 percentage points on August 1—seems unlikely to reverse the trend. Insurers also continue to offer enhanced rates on euro-denominated funds—on average one percentage point higher than initially announced—which helps maintain the appeal of these policies. According to Philippe Crevel, director of the Cercle de l’Épargne, this investment retains a comparative advantage that competition from regulated savings products has failed to erode.
Sources: France Assureurs; Cercle de l'Épargne, press release by Philippe Crevel, life insurance results for May 2026 (July 1, 2026).
