Life insurance: good surprise for the average return on euros funds in 2024

The average yield of Euros funds finally maintained 2.6% in 2024. Slightly better than expectations.

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Good news for savers, Euros funds – the guaranteed capital insurance media – reported more than expected in 2024. At its annual press conference on Wednesday, March 26, France Insurers revealed that the average rate served on the secure part of life insurance contracts was 2.6% Last year. Information confirmed by the Prudential Control and Resolution Authority (ACPR) this Thursday, March 27. In its study on the life insurance market in 2024, the sector of the sector expressed one of a “Revaluation rate (which) would then settle around 2.6% for the year 2024”. An estimate still “preliminary”, but based on the press releases and declarations made by ACPR insurance organizations.

Average performance should therefore be at the same level as in 2023 (2.6% on average also) and slightly above what was expected. As a reminder, the Facts & Figures firm anticipated, for example, an average rate around 2.5%. A return that would have allowed euros to display a just higher rate* to that of booklet A, lowered from 3% to 2.4% on February 1.

The big gap of Euros funds

To accentuate the gap between these two secure savings products, insurers have again drawn from their reserves in 2024, in particular the provision for participation in profits (PPB), a windfall that allows them to smooth over time variations in euros. According to France insurers data, the share of PPB in insurers’ provisions still fell between 2023 and 2024, going from 4.5% to 3.9%, therefore, a part was used to maintain an unchanged level of yield.

However, notes the ACPR, not all savers have benefited in the same proportions of maintaining this return. It is indeed an average rate, which covers significant differences: “The first estimates of the revaluation rate highlight heterogeneous revaluations among insurers”, Note the ACPR. In our comparative table of rates served in 2024, which scrutinizes nearly 900 contracts, it appears that the best euros funds were able to distribute more than 4% last year, when others struggled to exceed 2%.

*Unlike the rate of booklet A, that of euros funds is given gross social security contributions and before possible taxation.