Afer's euro fund, which has long been one of the best on the market, is in trouble. This contract, subscribed by 750,000 savers, will yield only 2.22% for 2023 (net of management fees and excluding social security contributions at 17.2%). A yield up over one year (+0.21%) but disappointing, given the rates posted by the competition.
A number of insurers have already come out of the woodwork, announcing rates around 3% for the year 2023. (Garance at 3.50%, La France mutualiste at 3.70%, MACSF and Generali at 3.10%, GMF Vie at 2.80%, Milleis Vie at 2.75%, Macif 2.50%...). The average yield is expected to be between 2.50% and 2.70% according to the specialized website Good Value For Money. "We're not the best, but we're going to be the best again," said Gérard Bekerman, president of Afer, when the association's rate was announced.
To achieve attractive remuneration, most insurers have increased their interest rates substantially (around +0.8% compared to 2022). To this end, they have drawn on their reserves (the provision for profit-sharing), which are set up for this purpose. However, Afer has few reservations. "You don't give what you want to shine. We give what we can to ensure the security of our savings over time," said Gérard Bekerman. Since 2005, the Afer euro fund has returned an average of 3%, according to the association.
Larger-than-expected withdrawals
Last year, the euro life insurance fund outflows nearly 25 billion euros, according to France Assureur. Afer's euro fund is no exception to this setback. Net inflows (payments – deaths – buybacks) were negative by -€900 million. The association, whose audience is elderly, has been penalized by increasing withdrawals, linked to deaths. Their number is "slightly increasing", AFER acknowledges. They amounted to €1.6 billion. The fund's assets under management in euros are €41 billion.
It has not been a good year for the incumbents in life insurance. This investment faces competition from other investments (Livret A, term deposits) which are taking full advantage of the surge in interest rates in recent months, and offer returns in excess of 3%. And that's not all, new, highly profitable offers are coming onto the market, taking advantage of this new environment. Corum Life, launched in July, offered 4.45% - annualized return - for 2023 while investment direct.com 4.10%. But these players weigh very little compared to the 1383 billion euros of euro-denominated funds, managed for the most part by bank-insurers, and associations such as Afer.