Since 2012, when we launched the annual Life Insurance Rate of Return, earnings erosion has been steady. Around 4% net of management fees at the start of the 2010s, the rates of return for most life insurance companies today hardly exceed 1.5% of annual profitability. The explanation still lies in the policy of central banks that keep bond rates low to help revive the economy. This continuation weighed again on the returns of funds denominated in euros in 2019 since they are mainly invested in bonds.
Mutualists between 1.60% and 1.95%
With a few small exceptions, the vast majority of mutual companies still served the most honorable returns on the market, even if they are down compared to 2018, like the vast majority of insurers. Their contracts fell an average of 0.5 points from a year ago to around 1.60% to 1.70%. This is particularly the case for the main mutualist groups (Maif, Macif, Macsf, Carac, Le Conservateur, SMABvieBTP, Maaf, Mif) which are around 1.60% and 1.80%, with a peak for Mif which is close to the 2% (1.95% served). According to the management of Mif, “These results are notably enabled by a mutualist structure (without shareholders to remunerate) and a controlled cost model with low management fees”. It specifies that the rate paid applies to all of its life insurance contracts, regardless of the length of the contract.
Online banking results are the yoyo
Some direct banks (ING direct, Boursorama) do not impress with their results: 1.15%. Fortuneo is doing better (1.60%). Carrefour Banque even stands out squarely with 2.14%. But more for everyone! The supermarket chain has announced that it has stopped marketing its Carrefour Horizons life insurance contract. Only contracts already open before the end of 2019 will continue to live on and benefit from these returns.
Private insurers and bank insurers rather flat
Savings Bank, Generali, Swiss Life, etc., for their part, continue to occupy the bottom positions with a tiny 1% for Swiss Life. However, with the latest announcement of the reduction in the livret A rate to 0.50%, life insurance is maintaining a relative interest. The one, at least, to put his money in safety. This is not the case with Eurocroissance funds or equity funds (partially or fully invested in equities) whose capital is not guaranteed! It is therefore always advisable not to give in to the sirens of financial advisers who offer to diversify your life insurance with equities, without knowing a minimum of how the stock market works and closely monitoring the selected equities.
2019 rates of return on 20 life insurance contracts(1)
|Insurer||Contract name||2019 yield (reminder of the 2018 rate)(1)||Evolution over 1 year|
Apicil Efficient Frontier
Asac Fapès Alliantz
BNP Paribas Cardif
BNP Paribas Multiplacements
Carac savings account
The postal bank
Free Future Savings Account
Multi-account pension plan
Swiss Life Freedom
(1) Rates net of management fees but gross of social security contributions and fees on payments.
(2) Carrefour is abandoning life insurance. It is no longer possible to take out new contracts with Carrefour bank. Only current contracts will continue to be managed.