In 2021, the French saved nearly 50 billion euros more on Livret A and life insurance

In terms of financial investments, 2021 was undeniably the year of the Livret A – more than 26 billion euros had been collected there (net amount), unheard of since 2012. The year 2021, meanwhile, has seen the planets align in favor of life insurance: with 23.7 billion euros of net inflows (the sums invested, less those withdrawn), the latter signed its best year since 2010, according to provisional figures published in early February by France Assureurs, the federation which brings together insurers. Enough to forget the outflow of 2.4 billion in 2020.

In presenting the 2021 results, the general manager of the federation, Franck Le Vallois, welcomed a “record year”, during which the contributions, that is to say the gross deposits of savers, for the first time exceeded 150 billion euros, at 151.1 billion.

6.8 billion

This is the amount, in euros, of the collection carried out on the Livret A and the Livret de développement durable et solidaire in January 2022. The total outstanding amount on the two products reached 476.5 billion euros at the end of January. This strong collection comes as the rate of remuneration for these two booklets was increased to 1% on February 1. “After three successive outflows at the end of last year, Livret A recorded an exceptional inflow for the first month of 2022” notes Philippe Crevel. The booklets therefore have “benefited from the announcement effect of the increase in its rate during the month of January. In the past, the month of the announcement of an increase and the months that follow were accompanied by a marked increase in collection before returning to its traditional rhythm., he adds. January is traditionally a buoyant month for Livret A. “Households allocate part of their end-of-year bonuses or their 13and month “, observes Philippe Crevel. The month of January is also marked by the payment of part of the reductions and tax credits due by the State in respect of income tax. “8.7 million tax households received, as of January 17, 5.3 billion euros in reductions and tax credits in respect of their 2021 income”, specifies Philippe Crevel.

“We find overall the levels of net inflow of the period preceding the health crisis, those of 2018 and 2019, without however finding the splendor of the 1990s and 2000s”, tempers, however, Philippe Crevel, founder of the Circle of savings. “Considering that 2020 was a bad year for life insurance due to the closure of branches and the priority on precautionary savings, we cannot say that there has been a catch-up in 2021, the compensation effect remains weak”, he believes.

The good results for 2021 are not driven by the traditional life insurance funds in euros (products with guaranteed capital) – they show, for their part, an outflow of 11 billion (with around 93 billion newly collected and 104 withdrawn) – but by “unit-linked” supports, invested in a more risky way.

The investment of the year 2021, a “non-investment”

Net collection of the latter: 34.7 billion, a “a level never reached over a year”, according to France Assurers. Almost 39% of the amounts invested in life insurance in 2021 were directed to these units of account, compared to around 35% in 2020 and 28% in 2018 and 2019. You have to go back to the year 2000 to find a similar proportion, at just over 40%.

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Life insurance outstandings (total sums invested) thus reached 1,876 billion euros at the end of 2021. It is about five times more than that of the Livret A, of course, but it has not lost its luster in 2021, with a net collection still very high, of 15.17 billion euros.

“With the health restrictions of the first half of the year and the persistence of the epidemic, the French still saved massively in 2021, even if the phenomenon is less extensive than in 2020”, notes M. Crevel.

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