Life insurance: funds in euros that can be boosted at the end of the year

Euro funds and life insurance: a rapidly increasing return?

The significant increase in key rates of the European Central Bank, or ECB, has an immediate positive impact on the attractiveness of life insurance contracts. Bonds, but also other fixed-income assets, make up the majority of insurers’ portfolios. Thus, with rising rates, bond yields increase, even if the effect is attenuated by the predominance of old, low-yielding bonds (2).

According to the prudential control and resolution authority (ACPR), the overall return on euro funds reached 1.91% in 2022 (1). This performance, which may seem modest on the surface, is nevertheless an increase of almost 50% compared to 2021.

According to the firm Facts & Figures, the foreseeable continuation of the inflationary phenomenon should continue to favor investments in life insurance for a certain period. The average yield of contracts for the year 2023 could further increase by 50 basis points, and reach 2,50 % (2).

To attract savers, market players are seeking to promote life insurance funds in euros by offering boosted rates. Among the life insurance contracts offering these offers, certain contracts stand out and stand out. This is the case of the KOMPOZ life insurance contract distributed by Sicavonline.fr whose euro fund reaches up to 2.31% return net of management fees in 2022*. At the end of 2023 and over 2024, a performance bonus of +1.60% net of fees on the fund in euros can be allocated to members subject to respecting the conditions of the offer, which are mentioned at the end of article.

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Note that certain insurers no longer accepted that savers pay 100% of their investment into the fund in euros. Today, more and more people seem to be removing this barrier. This is particularly the case for the KOMPOZ life insurance contract which can be taken out with payments invested 100% in the Euro fund.

What are the criteria for choosing your next life insurance?

Are you considering taking out a life insurance policy in the near future? In order to make your choice, it is necessary to study a number of characteristics, such as:

• the diversity of supports available (euro funds and unit-linked support vehicles presenting a risk of capital loss**);
• THE costs associated with the contract (subscription, payments, annual management, etc.);
• The different management methods (free management, piloted, management under mandate, etc.);
• THE options and guarantees proposed within the contract.

In all cases, it is important to ensure that the choice of financial allocation that you make on your life insurance contract is consistent with your situation and your objectives.

Furthermore, by taking advantage of a boosted rate offer on this medium, savers can receive attractive remuneration. Of course, this requires that they respect the conditions of the offer.

* Rate of return of 2.31% obtained in 2022 on a life insurance contract with a distribution of 30% in funds in euros and 70% to 99% in unit of account, with the implementation of scheduled payments. This 2022 annual rate of return is net of contract management fees and gross of social and tax deductions, acquired pro rata temporis.

Please note that past performance is no guarantee of future performance.

**Investing in a unit-linked medium presents a risk of capital loss. The insurer only commits to the number of units of account, but not to their value. The value of these units of account, which reflects the value of underlying assets, is not guaranteed but is subject to upward or downward fluctuations, depending in particular on developments in the financial markets.

Conditions of the boosted rate offer

The promotional offer applies to the KOMPOZ Free Management contract for the following operations, carried out between 10/16/2023 and 12/31/2023, and invested in whole or in part in the fund in euros:

• Memberships with an initial payment of €500 minimum (€100 if self-managed scheduled payments are set up. The promotional offer does not apply to scheduled payments).
• Free payments of €100 minimum (excluding scheduled payments).

For these operations, you can benefit from an additional yield bonus of +1.60% in 2023 on the portion allocated to support in euros in 2023 in proportion to the time spent on the fund in euros, provided you are invested there until on 12/31/2023, and in 2024 on condition of being invested in the fund in euros until 12/31/2024.

For 2023, the remuneration of the boosted rate is calculated as of December 31, 2023, net of contract management fees and gross of social and tax deductions, acquired pro rata temporis of the time spent on the Ageas France euro fund since the date of investment in the fund in euros subject to the offer and according to the options chosen.

For 2024, the boosted rate remuneration is calculated as of December 31, 2024, net of contract management fees and gross of social and tax contributions, depending on the options chosen.

Any disinvestment in the fund in euros, from the start of the promotional offer at a boosted rate, will not give rise to an increase in the fund in euros, with the exception of the profit sharing allocated for the year 2023 , if applicable (for a divestment after 12/31/2023).

Ageas France will terminate the offer early if changes to the regulatory provisions concerning guaranteed rates so require.

SICAVONLINE, public limited company with capital of 4,000,596 euros. Head office: 7 allée de l’Arche – 92400 Courbevoie n° 423 973 494 – INTRACOMMUNITY VAT number: FR 40423973494. Investment Services Provider approved by the Prudential Control and Resolution Authority under number 19253. Company of insurance brokerage and intermediary in banking operations and payment services, registered with ORIAS under number 18001256, www.orias.fr.

KOMPOZ is a group life insurance contract insured by Ageas France and marketed by Sicavonline, as an insurance broker, registered with ORIAS under number 18001256, www.orias.fr.

The subscriber to the KOMPOZ contract is the Personaliz Epargne Digitale association.

Ageas France, an anonymous life insurance company.
Company governed by the Insurance Code, approved by the Prudential Control Authority, with capital of €159,221,273.61.
Registered in the Nanterre Trade and Companies Register at number 352 191 167, whose head office is located at 7 allée de l’Arche 92400 Courbevoie.

Sources :

(1) 2022 revaluation of life insurance and capitalization contracts – commitments mainly focused on savings and individual retirement – Analyzes and summary n°149 – 2023 | ACPR

(2) Life insurance: the 2023 return on euro funds between 1.80 and 4.50%, depending on the contracts | Capital.fr (10/27/2023)

(3) Macroeconomic projections for the euro zone – September 2023 | European Central Bank