Savers are strongly encouraged to fill their life insurance contracts with unit-linked products, which are more risky than the euro fund, the capital of which is guaranteed. A winning strategy? A report details the performance of these units of account over the last 10 years.
How much are units of account worth, these supports which make it possible to invest in shares, in real estate or in bonds for example, within the framework of a life insurance contract? Savers are increasingly encouraged to dedicate part of their money to these investment funds. According to figures published this Friday by France Assureurs, since the beginning of the year, 39% payments on life insurance contracts were made on unit-linked units, potentially more profitable than the guaranteed capital euro fund, but also more risky.
A report by France Assureurs, published in September, also reviews the results of unit-linked products over the past 10 years. And they weren’t linear. Far from it. Between 2012 and 2018, the average performance of unit-linked life insurance and capitalization contracts was not as expected. Yields, net of management fees and social and tax deductions, went from +10.2% -8.9%. A fuck year after year explained in particular by the stock market fluctuations, the image of the CAC 40 index, whose performance is also uneven.
The relative correlation between the CAC 40 and the units of account
The returns on these assets seem to go along with the declines and rises of the CAC 40. When in 2013the CAC 40 rises +18%the units of account recorded a performance of +7.1% . The following year, on the other hand, the CAC 40 was at half mast (-0.5%) while the UCs ended up in the green (+5.1%). In 2018units of account lost almost 9% with a fall in the CAC 40 (-11%).
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But the correlation is not automatic. In 2020despite a decline in 7.1% for the CAC 40, unit-linked units recorded an average gain of +1.1%. Conversely, in 2021, the stock market broke records with a jump of +28.9%. The CPUs have struggled to reach the same level with a +9.1%.
But for 2022, performance is more than uncertain. The CAC 40 recorded a drop of -12% since the beginning of the year. We can therefore expect a drop in the unit-linked side as well.
Life insurance: the influence of the CAC 40 on units of account