THE units of account (UA) show lower performance than euro funds in 2022. These riskier vehicles are supposed to potentially offer better performance than euro funds, which are guaranteed in capital. But 2022 has been a bad year for UC. They recorded a negative average return for the past year: −11.2% (against +9.9% in 2021)according to a report by France Assureurs.
However, net inflows on unit-linked units remained positive and stood at +€34.3 billion in 2022i.e. 100 million euros more than in 2021. The units of account that attracted the most crowds are equities and equity funds.
It is also on these supports that the 2022 returns are the worst. According to France Assureurs, this performance “was driven by the conjunction of a bad year on equity and asset allocation fund segments, as well as on bond products following the sharp rise in interest rates”. For example, the CAC 40 fell 9% last year.
An annualized return of 1.3% over the past five years
As a result, the average performance of UCs in life insurance over 5 years (over the period 2017 to 2022) reached 2.09%. You still have to remove the management fees taken by the distributors of the contracts which amount to 0.79% on average in 2022. The performance net of unit-linked fees thus only reaches 1,3%.
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2023-08-02 16:22:35
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