the top 10 and the flop 10 of rates 2021

The 2021 vintage of life insurance euro funds was shaping up to be a bad year. Worse than the previous year, like an eternal bis repeated for 10 years, or even more. Finally, the announced catastrophe hid several good surprises. And as always real flops.

What will be the average rate of return on life insurance risk-free funds for the year 2021? Very difficult to say! The various research firms that have looked into the subject during 2021 have all anticipated an average return of around 1%, slightly above this symbolic bar, after an average rate of 1.28% in 2020.

But after seeing the announcements, with insurers having now almost all revealed themselves, the average rate will most likely be much closer to its 2020 level than the 1% mark. Unlike last year, several insurers have revised their remuneration upwards! The explanation may lie on the side of a Livret A effect, insurers wanting to avoid assuming a lower rate than the Livret A, raised to 1% on February 1, 2022. It should also be remembered that insurers have very abundantly endowed with their yield reserves – the famous PPB, provision for profit-sharing – in recent years, which today allows them to limit breakage.

Average rates of funds in euros

The top 10 euro funds in 2021

The top 10 returns bring together several very good surprises for savers. From Garance which maintains its astonishing rate of 2.75%, the MACSF which has raised its rate from 1.55% to 2.10%! Not to mention a host of dynamic funds, which are taking advantage of a very favorable year for equities in 2021 (more than 28% for the CAC 40) to rebound after a mixed vintage in 2020.

Caution: these very high yields hide either restricted or very specific access conditionsor more simply for Garance – as on the vast majority of contracts – the presence of fees on payment in order to benefit from this remuneration.

Life insurance: 2 years of lost return due to fees on payment!

In this top also many real estate funds or dynamic funds, accessible in addition to a classic fund in euros, less profitable, on the same life insurance contract.

  1. Madder, 2.75% (1)on the fund in euros of the Garance Epargne contract.
  2. Surfuture, 2.50%on Srnipierre’s Sécurit Pierre Euro real estate fund: an attractive medium, but access to it is extremely restricted.
  3. AGPM, 2.50%, on the Eparmil Plan with the disability savings option, reserved for members who can prove a disability. Without this specific option, the return is 1.70%.
  4. Allianz, 2.43% on average on the brand new Allianz Vie Fidlit contract, which requires you to block your savings for 5 years to ensure that you benefit from this annual return.
  5. Orada Life, 2.35% on Target Euro Security, a very specific dynamic fund: it is only accessible once a year, on the Target+ contract.
  6. Spirica, 2.28% on the dynamic fund NeoEuroGaranti 2, a dynamic fund present on heritage contracts but which no longer accepts new deposits.
  7. Monceau Insurance, 2.15% on the euro fund of the old Carnet Multi Epargne contract, which has not been marketed since 1997.
  8. MACSF, 2.10% on the RES Multisupport euro fund.
  9. Orado Life, 2.10% on Scurit Infra Euro, a fund dedicated to investments in major infrastructures, in addition to a traditional fund, on heritage contracts offered by Primonial.
  10. France Mutualiste, 2% on the life insurance Retraite mutualiste du combatant (RMC), the insurer’s historic contract, dedicated to veterans

If we eliminate the funds in specific euros to keep only classic euro fundsthere remain Garance Epargne, Carnet Multi Epargne from Monceau Assurances and RES Multisupport from MACSF, on which the fund in euros is accessible to all savers without any particular constraints.

Three conventional euro funds above 2%, however, is much better than last year: only mutual insurance company Garance exceeded 2% in this fund category. the top 5 classic funds is then completed by Dynalife of Monceau Assurances (1.90%) and by all of the association’s life insurers gayparous (1.80%).

Life insurance: 2021 rates for large euro funds, from best to worst

growing yields map

Any classification always hides a more complex reality. But it’s even truer this year for life insurance funds in euros. The fault, in the first place, with the innumerable bonuses of return which complicate more and more the reading of the grids of rates.

First example. EasyVieonline contract of the EasyBourse subsidiary of La Banque Postale: the return on the fund in euros ranges from simple to double, from 1.10% to 2.20% depending on the share of units of account (UA) held by the saver.

Same difference from simple to double, for the same reasons, at on Evolution Lifecontract managed by Aviva: a 2021 rate of 1.31% to 2.62%, with an additional subtlety: the 2.62% bonus rate only concerns half of a payment or arbitration made during 2021, if the other half t oriented towards UC.

The insurer SwissLife has for a very long time assumed very low base rates, and very high maximum rates, depending on the unit’s share. This year, the basic rate is 0.80% and rises to 2.48% on 60% of life insurance invested in unit-linked funds, or even more than 2.70% for large savers (more than 250,000 euros) and even 2.90% with the same conditions on Darjeeling web contracts from Placement-Direct and Titres@Vie from Altaprofits.

Even the big banks are converting these performance bonuses, the image of the Credit Agricole on Predissime 9 series 2 or Credit du Nord on Antarius, joining BNP Paribas, Banque Populaire, Crdit Mutuel, etc.

Finally, the new generations of funds in euros such as that ofAllianz Life Fidlit, whose return is conditional on 5-year fidelity, again complicates the legibility of returns. And beware, 2.43% is an average rate: some savers receive more, up to 2.90%, and others receive less, but the insurer does not communicate its minimum rate.

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The flop 10 of euro funds in 2021

Side flops, like almost every year: big banks. But also insurers assuming ranges of remuneration, with large bonuses depending on the investment in UC. Finally, the ranking of the worst earnings of the year serves as a reminder that some insurers can be both top and flop at the same time, or at least choose to pay little on certain old contracts, and favor other funds in euros present on more recent or higher-end life insurance policies. A choice of trade policy.

Life insurance: how the rate of your fund is made in euros

Here, at this stage, are the lowest remuneration paid in 2021 on funds in euros. A classification of flops that can still evolve: unpleasant surprises remain possible, because insurers are careful not to spontaneously reveal the rates paid on old contracts.

  1. Savings Bank, 0.50% on certain old policies managed by CNP Assurances: Initiatives Plus and Transmission, Yoga and Ricochet as well as Akido.
  2. Beetle, 0.50% on the Apicil Euro Garanti Fund: this is the base rate on contracts closed to marketing (Liberalys Vie, Frontire Efficiente and Performance Absolue Vie). A return that can be increased by up to 1% depending on the share of UC in the contract. For contracts open to marketing, this yield ranges from 0.70% to 1.30%.
  3. The Postal Bank, 0.65% on the fund in euros of the general public Vivaccio range, still marketed today and insured by CNP.
  4. Credit Agricole, 0.65% on the Predissime 9 series 2 consumer contract. But for the first time, for the 2021 remuneration, this minimum return can be increased by up to 1.45% depending on the UC share.
  5. Generali, 0.70% on the AGGV fund, Genarali Vie’s general asset present on the insurer’s main contracts (Himalia, Xalidia, etc.): this base rate can rise to 1.40% if 60% of the contract is invested in UC.
  6. Savings Bank, 0.75% for the old consumer policies Nuances 3D, Grenadine, managed by CNP assurances, but also for the most recent Millevie Essentielle (versions 1 and 2) and Millevie Initiale, managed by BPCE Vie.
  7. Generali, 0.75% on Eurossima, the main fund in euros for the insurer’s web contracts.
  8. Societe Generale, 0.75% on the euro fund of the entry-level Erable Essentiel contract and the very popular Squoia. A performance bonus can bring the remuneration up to 1.76% on one and 1.84% on the other, depending on the unit share and the size of the contract’s outstandings.
  9. AG2R La Mondiale, 0.76% on the Vivpargne 2 euro fund.
  10. SwissLife, 0.80% base rate that can be significantly increased as explained in the box above.

Compare low cost life insurance policies

(1) All returns are net of management fees, but before social and tax deductions. On the impact of taxation, read Taxes: what your investments really bring you.

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