For several years now, life insurance has been experiencing an almost constant decline in returns. Declines that oscillate between 0.20 and 0.30 points, and which apparently did not spare the year 2015. According to the latest statistics, returns have remained modest over the past 12 months, despite the exceptions of a few insurers. A trend that would not yet be ready to change for 2016. The details..
The 2015 assessment
In 2013, the average rate of return on euro-denominated funds in life insurance was 2.8%, before falling to 2.5% in 2014. According to data collected from the AFA or Association française de l’assurance, this downward trend continued throughout 2015, reaching an average rate of 2.3%. This represents a decrease of about 0.20 points. Of course, there are differences according to the contracts concerned, but on average, these declines are between 0.15 and 0.35 points. According to the note published by the High Financial Stability Board at the end of December 2015, this decline in the yield on euro funds would be “necessary”, given the current financial environment. This adjustment would then allow insurers to put a large portion of their revenues in reserve, with the aim of restoring the provision within a few years.
The best rates 2015
While a return of 3% is now rare in life insurance, some insurers were able to achieve exceptional rates in 2015. Despite this inevitable decline, mutuals posted returns of 3% or more. For Helios Sélection, the Registrar recorded a rate of 3.10% and the Carac reached 3% on its solidarity contract. Despite a 0.35 point decline, MiFID also posted a 3.30% rate of return, and Monceau Assurances is close at 3.27%. Afer, on the other hand, has only decreased by 0.15 points and still applies a yield of 3.05%. AXA, on the other hand, is a little off the mark with a 0.35 point drop and a rate of only 2.20%.
Outlook for 2016
Thus, according to financial experts, the increase in life insurance returns would not yet be for 2016. On the contrary, estimates still speak of decreases between 0.20 and 0.30 points. However, savers do not necessarily lose out in history and, particularly with the euro fund, many advantages remain to be enjoyed. This is the most secure contract and is practically adapted to all profiles. The French’s preferred investment remains in the running for 2016, especially since most savers have abandoned the Livret A passbook savings account and its 0.75% return and do not count on Plan B, which is a real scam.