With a few exceptions, life insurance is set to bring in lower returns for savers in 2019, while the average yield on euro funds remained stable at 1.80% year-on-year the previous year. The downward trend is confirmed by several industry players, including France Mutualiste with its Actépargne2 multisupport contract and Société Générale, which was the first bank to announce the rates of return served by its euro funds.
Sogécap: a negative real return
Sogécap has published the returns on its euro funds. In 2019, the Erable Essentiel and Sequoia life insurance contracts yielded 0.90% gross, well below inflation after deduction of social security contributions (0.75%). Ebène policyholders fared slightly better, with a gross yield of 1.30%.
In a press release, the group's insurance company states that "in a financial environment marked by low or even negative rates", the yield on euro funds offered by Société Générale will be 1.35% for 2019, compared with 1.75% in 2018, marking a decline of 40 basis points.
A more moderate decline among savings associations and mutuals
This downward trend in returns on euro funds is also being observed by other players. Swiss Life, for example, has announced a return of 1% for 2019, compared with 1.50% a year earlier. The insurer is followed by Generali, with a remuneration of between 1 and 1.50% for its Actif Général Generali Vie (AGGV) contract, depending on the proportion invested in units of account. Generali's Eurossima fund is also down sharply, at 1.15% (1.65% in 2018). Aviva, meanwhile, has announced a minimum rate net of fees of 1% for its euro funds.
While a number of insurers have caused a stir by unveiling drastic yield cuts, most savings associations and mutual insurers have opted to maintain a rate of return of between 1.50% and 2%. The euro fund of the contract offered by Afer thus yielded 1.85% in 2019 (2.25% in 2018). Entities of the Covéa mutual group offered respectable rates of : 1.90% at GMF, 1.75% at MAAF, 1.47 to 1.97% at MMA. Only three players managed to maintain a rate above 2%: the Carac mutual insurance company with its Carac Profileo contract (2.20%), the Gaipare savings association (2.15%) and Monceau Assurances with its Dynavie contract (2.20%).
According to some specialists, insurers are trying to dissuade customers from investing in euro funds, in favor of unit-linked policies that require less capital.