Life insurance broke a record in 2025, with an outstanding amount of 2,107 billion euros at the end of December according to France Assureurs. Next to 1,475 billion are housed on funds in eurosthese guaranteed capital supports which capture 70% of policyholder savings. The average return served in 2025 reached 2.60% according to France Assureurs, 2.65% according to the ACPR. This is the third consecutive year of stability, and it is well above the Livret A which has fallen to 1.5% net since February 1, 2026.
But do you really know what your euro fund is made up of? Its composition can change a lot of things. This is directly visible in the yields, because this average of 2.60% hides considerable differences. Over 2025, the worst performing euro funds served 2.15%, the best 4.10% net of feessome contracts even exceeding 4.50% with a conditional bonus linked to the units of account. These differences are due to an element that few savers look at: the composition of the bond portfolio.
70 to 80% bond in your euro fund
“Euro funds are made up on average of 70 to 80 % of bonds, divided between government bonds and corporate bonds. There quality of bond management is therefore key »explains Catherine Baudeneau, spokesperson for Altaprofits, financial investment broker. State bonds, known as sovereign bonds, are generally less profitable but almost without risk of default. Corporate bonds pay a higher coupon to compensate for higher risk. The balance of the portfolio is supplemented by shares, real estate and monetary products.
The exact composition of the portfolio remains obscure to most, but “it is possible to know the composition of the bond portfolio of your euro fund by consulting the annual report, which is a public document”recalls Catherine Baudeneau. This report details the distribution between government bonds and corporate bonds, the average rating of the bond portfolio, and sometimes the duration, that is to say the sensitivity of the portfolio to a change in interest rates. It is in this report that we can assess the dynamics in which the fund is positioned.
In euro funds, bonds are generally held until maturity. They have an average duration of around 6 to 7 years, but this varies. For example, a short duration (3 to 5 years) means that the portfolio renews quickly : it quickly captures market rates, both up and down. A long duration (8 to 12 years) locks in the return for longer: it is advantageous when rates are falling, but disadvantageous when they rise.
A return that appreciates over time
For all these reasons, a short duration would not be enough to judge a fund. “Be careful when interpreting the return of a fund in euros over one year. It is preferable to look at its history to ensure performance long-term management »warns Catherine Baudeneau. An exceptional performance over a year can be explained by one-off gains that will not be repeated. The performance of bond management is measured over a minimum of 3 to 5 years. Without forgetting that an insurer can, for a given year, draw on his supply for profit sharing (PPB). That is to say, it takes the good years from a reserve to smooth out the returns from the less good ones.
