Life Insurance: Will Your Yields Eventually Increase?

A one-year stable rate at Afer or MIF, and even a rise at MACSF, SMA Vie, or Conservateur … Indeed, the first issue in January is often the most generous company. am. For the life insurance contract of the previous year. But these 2021 results are surprising for the time being. “The excellent stock market vintages that have allowed insurers to earn capital gains on equities partially explain these good numbers,” said Sector Specialist and our program ” Cyrille Charter-Kastler, a guest of Legrandrendez-voussavings, has a partnership with Radio Patrimoine. While these solid returns were primarily announced by SMEs, some large companies with higher average rates, such as Societe Generale, also wanted to mark this opportunity. “But this type of insurer offered a fairly low yield, even close to less than 1%,” points out the founder of the Good Value For Money site.

So, after years of steady decline, do we need to see a prelude to increased yields with this? “Economists working for certain insurance companies are betting on rising bond rates where the majority of euro-denominated life insurance funds are invested, but if that happens in the United States, it’s not so certain on the European side. No, because very debt-rich states can’t help confirm the increase in borrowing costs, “explains experts. Moreover, this early rebound should not change the terms of access to euro-denominated funds, which have become very restrictive. Therefore, it is expected that investment allocations will always be imposed. Even that particular fund shuts down in favor of a new one, reducing security. “By guaranteeing only 97-98% of our equities, insurers can expect more diversification of their investments, which can lead to higher long-term profitability,” explains Cyrille Charter-Kastler. But for savers, good calculations can easily be made by betting on good old mutual insurance companies like Carac and French mutualists. “I call it the” graveyard effect. ” Their dilapidated membership base tends to shrink. This will allow new entrants to take advantage of the excellent investments these organizations made a few years ago, “explains Cyrille Charter-Kastler.

Another factor driving yields is a legal reserve, or reserve for surplus participation (PPE), which has been patiently built up over the years and can ultimately be withdrawn by the insurer. “This is actually over 7% for Crédit Mutuel and over 5% for many other bank insurers,” says Cyril Chartier Castler. MIF, which increased this PPE further this year to a total of 3.47%, now believes it has reached its highest point. “This provision seems to be sufficient to deal with adverse scenarios,” confirms Olivier Sentis, the mutual general manager. Asked in our report sequence, he shows that this reserve may be redistributed as interest rates rise. “The risk if these interest rates recover is, in fact, that the saver is leaving the old contract and moving to new, more profitable support as it consists only of recent bonds,” said Cyril Chartier.・ Castler will explain.

The Euro Fund is also subject to a monthly “coup” by columnist Pierre Sabatier. While the stock market was sluggish during January, he said, the guaranteed fund was long accused of not being able to provide returns and aimed to protect the capital invested by investors. It has fully fulfilled its role as “safety”. Conversely, PrimeView’s president gave his “anger” to financial markets that panicked with the first signs of a decline in the index, from Nasdaq in the United States to the stock markets in Europe. According to economists, these moves are primarily due to the stress of gear changes from a monetary policy perspective and need to be forecasted.

Finally, on a monthly basis, our experts will find a “it’s relevant to you” sequence that answers your questions about wealth and investment. Here’s how Stéphane Absolu, Associate Director of Pyxis Conseil, is considering a new version of the “affordable rent” system that will come into effect in early April. A lessor who agrees to pay the rent at a discounted rate instead of deducting the collected rent will benefit from the tax reduction. If the least taxpayer wins, on the contrary, those subject to high marginal tax rates may be interested in supporting older systems that can still be activated by the end of February. On her side, whether Natalie Kuzig Sujas, a notary in Paris, can still recover the money that would have been paid, which was injected into the monthly repayment of the co-owned dwellings at the time of the divorce. Shows more than any other spouse.