Savings. Worried about their future, the French are rushing to buy life insurance.

Insurers are rubbing their hands: the French, driven to save by fear of tomorrow, have never filled their life insurance accounts as much as since the beginning of the year. They deposited 97.8 billion euros into their policies, a record, according to data published Thursday by France Assureurs.

The "anxiety-inducing climate" is pushing savers to put money aside, explains Philippe Crevel, president of the Cercle de l'épargne (Savings Circle). The French savings rate reached its highest level in 45 years in the first quarter, excluding the period of the Covid-19 health crisis, according to INSEE.

Jackpot for insurers

The debate over reducing the budget deficit, often accompanied by the prospect of tax increases, is encouraging retirees in particular to put more money into their life insurance policies, to the detriment of consumption, Crevel analyzes. Savers are also happy to capitalize the interest generated by their investments, rather than withdrawing them.

During the first half of the year, benefits paid by insurers, in the event of redemption by savers or distribution to beneficiaries in the event of death, fell by 7% year-on-year to 71.2 billion euros.

It's the perfect combination for insurers: the difference between contributions and benefits, known as net collection, logically reaches an amount not seen since 2010 for the first half of the year, at €26.6 billion. Including €5 billion for the month of June alone, double that observed in June 2024.

Paul Esmein, CEO of France Assureurs, soberly highlighted on Thursday the "good dynamics of life insurance (...) which continued throughout the half-year," during a conference call.

The growth in life insurance also masks a contrasting reality between investment vehicles. On the one hand, unit-linked (UC), riskier but potentially more profitable investments, saw net inflows of €23.8 billion. On the other hand, euro-denominated funds, with capital guarantees, increased by only €2.9 billion.

Life insurance remains, by far, the most valuable investment in France. In January, total life insurance assets exceeded the €2 trillion mark for the first time. At the end of June, they reached €2.052 billion (+5% year-on-year).

Livret A in trouble

Regulated savings, another important source of cash for the French, were unable to compete in the first half of the year. The outstanding amount of Livret A savings accounts increased by barely €3 billion between January and June, according to the latest data from the Caisse des Dépôts (French Deposit Fund), nine times less than life insurance.

The drop in the Livret A rate on August 1, from 2.4% to 1.7%, should further disadvantage the match between these two savings families.