Life insurance, the preferred investment of households, has never been more aptly named. Driven by the declining appeal of regulated savings accounts like the Livret A, life insurance has just had an absolutely phenomenal first half of the year, with net inflows reaching €36,5 billion between January and June. This staggering amount, not seen for twenty years, comes close to the historical record of €40,2 billion set in the first half of 2006. This spectacular momentum has allowed the market to cross a massive symbolic threshold, with total assets under management now standing at €2162 billion at the end of June, representing a 6% year-on-year increase.
Behind this remarkable performance lies a complex interplay of factors orchestrated by interest rate policy. While the yield on the Livret A savings account is losing its appeal, prompting savers to seek better opportunities to grow their capital, life insurance confirms its role as an essential safe haven. June's figures perfectly illustrate this vitality, with a record €19,3 billion in contributions in a single month, a 12% increase year-on-year. Insurance-based retirement savings plans (PERs) are also benefiting from this widespread upturn, with €124,8 billion in assets under management for 8,5 million policyholders, confirming that this cornerstone of long-term savings remains a top financial concern for the French.
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