In 2025, insurers and pension funds redirected their investment flows to benefit from the increase in long term interest rates
Bulletin No. 266, article 3. In 2025, insurers and pension funds redirected their investment flows into debt securities and non money market collective investment undertakings (CIUs), at the expense of money market instruments and directly held equities. This reallocation took place amidst falling key interest rates and rising long term rates, which boosted the attractiveness of long term bond investments. The renewal of bond portfolios continued apace, leading to an increase in yields. Portfolios remain predominantly invested in euro denominated products. Their exposure to foreign currencies and to non euro area issuers remains limited and stable compared with 2024.
1 In 2025, investments by insurers and pension funds continued to grow, buoyed by life insurance inflows
Growth in outstandings has accelerated, driven mainly by higher net acquisitions
At end 2025, the market value of investments held by insurers and pension funds stood at EUR 3,109 billion, compared with EUR 2,950 billion the previous year, i.e. an increase of 5.4%. Of this total, 76% is held by life insurers, 17% by non life insurers and 7% by pension funds.
The growth in outstandings, which was more pronounced than in 2024 (up 3.4%), resulted from higher net acquisitions (EUR 91 billion, compared with EUR 55 billion in 2024) and more favourable valuation effects (EUR 44 billion, up from EUR 38 billion). Net life insurance inflows reached an exceptional level in 2025, and very rapid growth in non life insurance premiums underpinned net acquisitions.
Life insurance and retirement savings accounted for 32.9% of the financial wealth of French households at the end of 2025, equivalent to EUR 2,154 billion (Coron and Yang, 2026). According to the latest available data from the Institut national de la statistique et des études éco nomiques (INSEE – the French National Institute of Statistics and Economic Studies) for 2024 (INSEE, 2025), 42% of households had a life insurance policy and 19% held a retirement savings product, confirming life insurance as one of the most widely used financial investment vehicles in France, just behind savings accounts.
In 2025, French households maintained a high level of savings, a significant proportion of which was channelled into life insurance policies. Net inflows into these policies (excluding retirement savings) amounted to EUR 44 billion, their highest level since 2011 and almost double the figure for 2024 (EUR 22.8 billion). These inflows continued to be driven by unit linked funds, which accounted for 85% of the total, or EUR 37.6 billion. Following a period of sustained outflows between 2020 and 2024, net flows into euro denominated products returned to positive territory in 2025, amounting to +EUR 6.4 billion, compared with –EUR 2.7 billion in 2024. This was driven by revaluation rates which were maintained at attractive levels. In 2025, the average rate stabilised at 2.6% (Coron and Ahado, 2026), while the rate on Livret A passbook accounts – the main benchmark rate for savers – fell significantly from 2.4% to 1.7% during 2025.
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Updated on the 23rd of October 2026