2020 was a complex year for life insurance : the Fund return in euros are still so low due to negative interest rates and the crisis has led the French to more liquid supports like the Livret A or the LDDS. And yet the fund in euros of the Garance Epargne contract managed to receive a compensation of 2.75% in this barren landscape! An achievement that is far from the average of around 1% for the return on money in euros for French life insurance.
Garance offers the best return in life insurance in 2020 for its funds in euros
2.75% : it is that yield (minus management fees and before social security fees) the highest value for a fund in euros in French life insurance in 2020. And this fund is that of the contract Garance savings, especially dynamic in the current context. This is still a 0.25 point decrease from the previous year (3% in 2019). So the Net Return on Garance General Assets (the fund in euros) rose to 2.28% after deducting social security contributions and deductions.
This can be explained in particular by the long-term management strategy of the Garance subsidiary Indép’AM for more than 15 years. “The Garance General Assets fund consists of 72% bonds (for an average maturity of 12 years) and 28% assets with a higher risk and higher return. Just as it was possible to limit the effects of very low long-term interest rates, this strategy has largely protected the contract with Garance Epargne from the economic and financial consequences of the epidemic, ”Garance said in a press release on January 27th.
Garance differentiates his Means in euros Competition through greater diversification of the portfolio: 15% stocks, 6% diversified UCIs (Sicav, FCP), 5% real estate and 2% infrastructure. Its performance is further explained by the low level of management feesonly 0.5%. It is also stimulated by the lack of a PPB (Provision for profit sharing). De factothe entire service including capital gains is returned to the subscriber. However, this means that if bond yields continue to decline, the fund will not have minimal reserves to compensate for the loss of performance.
A contract that always enables a 100% guaranteed investment
In addition, the garance contract has another advantage: the possibility of conclude a 100% capital guarantee. This is even more important than a large number of life insurers New subscribers must save a minimum rate of UA (Units of account) in order to be able to open a contract. The investment can therefore be absolutely safe. “There is no pressure on customers to choose riskier products. You can always choose an investment profile that is 100% guaranteed, ”says Garance.
2020, a difficult year for life insurance
This performance This is all the more remarkable given that 2020 was a difficult year for French life insurance. Savers preferred to turn to more flexible and fluid carriers like the Livret A. or the LDDS as well too new PER (Retirement plans). In particular, it should be noted that the net outflow from life insurance at the end of 2020 was 7.3 billion.
Garance’s general net worth today stands at around € 4.8 billion. The contract of Garance Epargne, which started in 2018, has a total amount of EUR 182.5 million.