Euro funds: provisions for profit sharing (PPB) now exceed 71 billion euros (+8.84% in 2021) – Savings Guide

PPBs divide savers. Some are in favor of it and see in these provisions the guarantee of better returns in the years to come, others prefer to receive all of the profit sharing, and thus be certain that their share will not be allocated to another. The fact is that these provisions (PPB) continue to accumulate over the years, and savers have a hard time seeing their redistribution.

Increase in provisions? Good or bad news ?

This is not necessarily good news for savers, because everything that is set aside by insurers is as much that does not end up in the products of policyholders’ contracts. But insurers are thus trying to play on published returns in order to smooth out any air pockets over the years. And obviously, they are more and more cautious, because the level of PPB (provisions for profit sharing) continues to grow. Another +8.84% increase to reach 71.4 billion euros at the end of 2021. This starts at nearly 3,000 euros per contract. When will this money finally be returned to savers?

Always more provisions year after year, +4.87% in 2021

Standing at 65.6 billion euros at the end of 2020, the profit-sharing provision (PPB) for life insurance increased by 5.8 billion euros in 2021, rising to 71.4 billion euros. euros. In concrete terms, the average level of return set aside goes from 4.50% at the end of 2020 to 4.87% at the end of 2021, i.e. an increase of 37 cents.

TOP 5 PPBs

Unsurprisingly, 5 life insurers alone account for 65% of the sector’s profit-sharing provision (PPB).

TOP Insurers PPB in amount at the end of 2021 (billions of euros) PPB in %
1 CNP Assurances (La Banque Postale) €14.97 billion 6.10%
2 Predica (Credit Agricole / LCL) €13.11 billion 5.94%
3 ACM Vie SA and SAM (Crédit Mutuel Alliance Fédérale) €6.23 billion 7.34%
4 Cardif Life (BNP Paribas) €6.34 billion 6.13%
5 Sogecap (Societe Generale) €5.14 billion 7.92%

(Source: Good Value for Money site specializing in personal insurance and financial investments)

Overall, these 5 insurers, which are all subsidiaries of banking groups, have €45.8 billion in provisions for profit sharing (PPB), constituting a return reserve of 6.37% concerning them at the end of 2021. By way of illustration, the reversal of this reserve would allow these insurers to support the rates paid on the funds in euros of their customers by 0.80% per year over a period of 8 years. This is both a lot and a little in the current context of a sharp rise in interest rates.

PPB by insurers

Euro funds: Profit-sharing provision (PPB) by insurer at the end of 2021
TOP Life Insurers PPB as % of assets in euro funds PPB amount in millions of euros
🥇1 FRPS APICIL RETIREMENT SAVINGS 21.30% €38 million
🥈2 FRATERNAL LIFE FUND (CFV) 8.66% €16 million
🥉3 MILLEIS LIFE 8.47% €141 million
4 AFI ESCA 8.33% €87 million
5 ACM SAM LIFE 8.26% €907m
6 CCMA FORESIGHT 8.11% €292m
7 SOGECAP 7.92% €5,135 million
8 MATMUT LIFE 7.40% €89 million
9 GPM INSURANCE 7.22% €54 million
10 ACM VIE SA 7.21% €5,327 million
11 UNOFI ASSURANCES 6.21% €341m
12 FMG LIFE 6.20% €1,350 million
13 BNP PARIBAS CARDIF LIFE INSURANCE 6.13% €6,344 million
14 CNP ASSURANCES 6.10% €14,970 million
15 PREDICATED 5.94% €13,111m
16 GENERATION LIFE ALLIANZ. 5.90% €55 million
17 MAAF LIFE 5.66% €596m
18 CHAR 5.42% €497m
19 MAIF LIFE 5.33% €561 million
20 PREPARING LIFE 5.21% €303m
21 MUTAVIE 5.09% €1,225m
22 MMA LIFE SA 5.07% €957m
23 HSBC LIFE INSURANCE 4.97% €806 million
24 LIFE AREAS 4.91% €52 million
25 FRPS MALAKOFF HUMANIS ADDITIONAL PENSION MALA 4.79% €59 million
26 SMA LIFE BTP 4.64% €253m
27 BPCE LIFE 4.54% €2,447m
28 SURFUTURE 4.14% €1,348 million
29 MACSF RETIREMENT SAVINGS 4.03% €925 million
30 ANTARIUS 4.00% €369m
31 ALLIANZ LIFE 3.94% €1,481m
32 LIFE INSURANCE 3.91% €16m
33 CAPMA & CAPMI 3.85% €148m
34 THE AG2R WORLDWIDE 3.73% €2,192m
35 NINEFLIZE LIFE 3.59% €182m
36 THE MUTUAL INSURANCE CONSERVATOR 3.43% €83m
37 MUTUALIST FRANCE 3.41% €242 million
38 BEE LIFE 3.40% €1,073m
39 GENERALI LIFE 3.29% €2,281 million
40 MIF 3.17% €116 million
41 FORECAST LIFE 3.01% €105m
42 IMPERIO 2.77% €19 million
43 FOURTH MALAKOFF 2.65% €108 million
44 AGEAS FRANCE 2.60% €63m
45 BEE RETIREMENT SAVINGS 2.59% €559 million
46 SWISSLIFE INSURANCE AND HERITAGE 2.48% €437m
47 SAF BTP LIFE 2.48% €89 million
48 ORADEA LIFE 2.38% €76 million
49 AUXIA MALAKOFF MEDERIC 2.36% €24 million
50 FRPS ALLIANZ RETIREMENT 2.30% €267m
51 AXA MUTUAL LIFE INSURANCE 2.23% €124 million
52 GROUPAMA GAN LIFE 2.16% €808 million
53 MONCEAU RETIREMENT & SAVINGS 1.99% €6 million
54 GENERAL PENSION FUND (CGP) 1.88% €140m
55 FRPS BEE PROFESSIONAL RETIREMENT 1.86% €64 million
56 AXA FRANCE LIFE 1.83% €1,564m
57 APICIL SAVINGS 1.72% €82m
58 SPIRICA 1.43% €80 million
59 MUTEX S.A. 1.00% €35m
60 THE WORLD PARTNER 0.70% €131 million
61 SAGEVIE 0.62% €1 million
62 OPTIMUM LIFE 0.60% €1m
63 MADDER 0.50% €17m
64 FRPS ARIAL CNP ASSURANCES AG2R LA MONDIALE 0.49% €63m
65 FRPS AXA COMPANY RETIREMENT 0.06% €5 million
PPB by insurers, data at the end of 2021. (Data source: Good Value for Money website)

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