Posted Jan 13, 2022, 6:31 PMUpdated on Jan 13, 2022 at 7:34 PM
No bitter potion to swallow for Afer savers at the start of the year. The major association of life insurance savers announced Thursday that its capital guaranteed life insurance offered, for 2021, a return of 1.70%, equivalent to that of the previous year. This level could mark a low point for the association, at a time when inflation is making a comeback.
“The general fund rate has remained stable, I would say congratulations! “, welcomed the president of the association, Gérard Bekerman, after years of decline. The year 2021 was certainly marked by a strong rebound in the equity markets against a backdrop of economic recovery. But “the rates (of government bonds) remain at an extremely low level”, underlined the leader of the organization.
With contracts weighing more than 50 billion euros in assets, Afer always wants to offer the most attractive return possible to its 750,000 savers. In recent years, however, it had not been able to escape the downward movement in the yield of guaranteed capital contracts (euro funds), caused by the persistent low interest rates linked to the successive crises. Last year, the rate had fallen from 1.85% to 1.70%.
The stabilization of the yield of the euro fund of Afer comes as its historic partner, just renamed Abeille Assurances, passed last year from the hands of the British Aviva to those of the tricolor mutualist Aéma (which oversees Macif and Aésio). An assignment that gave rise to a battle between financial heavyweights, and regular and remarkable interventions from Afer.
This status quo comes at a time when inflation is making a comeback, raising concerns about purchasing power and raising expectations of an upcoming rise in the Livret A rate. In this context, the tightening policies of central banks give hope for a steady recovery. the bond interest rate.
Increase in reserves
“Is this a stop to lower rates? I hope so,” said Gerard Bekerman. He underlined that Afer – for once – had increased its reserves, which will smooth the performance of life insurance over time. What give the insurer Abeille a little more leeway in the future to manage market developments.
MAIF and Société Générale also announced stable rates. In a sign that the market may be pivoting, not only have some traders left their returns unchanged, but others have even announced rises, such as MACSF or SMA.
Ironically, Mutavie, attached to Macif and therefore to the same parent company as Abeille, for its part announced lower yields for its euro funds.