Financial assets of insurance corporations - France 2020Q3
Published on 8 January 2021
Insurers benefit from a revaluation of their portfolio
At end-September 2020, insurers' financial investments amount to €2,679 billion, up €7 billion. This increase is mainly due to a revaluation of their portfolio (+€23 billion). Excluding assets transfer *, insurers' net investments are zero overall; in terms of instruments, they are net sellers of long-term debt securities (-€16 billion) and net buyers of money market funds (+€13 billion).
The revaluation of long-term debt securities reaches €15 billion and €2 billion for bond funds in a context of lower long-term interest rates. Equity and mixed funds valuations are up to €9 billion, supported by the rise in the international equity markets.
* This transfer (-€16 billion) corresponds to the sale of assets from an insurer to a pension fund (Organisme de Retraite Professionnelle Supplémentaire under French law, ORPS). It could not be reintegrated in the data relating to this publication. These data will be subject to a revision next quarter to reintegrate this flow into insurance statistics.
The revaluation of long-term debt securities reaches €15 billion and €2 billion for bond funds in a context of lower long-term interest rates. Equity and mixed funds valuations are up to €9 billion, supported by the rise in the international equity markets.
* This transfer (-€16 billion) corresponds to the sale of assets from an insurer to a pension fund (Organisme de Retraite Professionnelle Supplémentaire under French law, ORPS). It could not be reintegrated in the data relating to this publication. These data will be subject to a revision next quarter to reintegrate this flow into insurance statistics.
Transactions of financial portfolio assets1 of insurance corporations (in billions of euros)
By category of issuers (2)
By geographical area
1. Debt securities, equities and investment fund shares
2. The unallocated of the graph by category of issuers corresponds to bonds and equities issued outside the euro area.
2. The unallocated of the graph by category of issuers corresponds to bonds and equities issued outside the euro area.
Financial assets of insurance corporations - 3rd quarter 2020![]()
(EUR billion, outstanding amounts at market prices at end of period, variations, transactions, valuation effects during period)
| Life and composite IC | Non-Life IC | Total IC | |||||||
| Flows | Valuation effect | Stocks | Net flows | Valuation effect | Stocks | Net flows | Valuation effect | Stocks | |
| Currency and depositis | -0.4 | 0.0 | 36 | 0.2 | 1.0 | 16 | -0.2 | 2.0 | 52 |
| Debt securities | |||||||||
| < ou= 1 year (original maturity) | -0.6 | 0.0 | 19 | 0.3 | 0.0 | 5 | -0.3 | 0.0 | 24 |
| > ou= 1 year (original maturity) | -28.3 | 13.8 | 1,460 | -0.8 | 0.9 | 112 | -29.1 | 14.6 | 1,571 |
| Loans | 1.4 | 0.0 | 50 | 0.0 | 0.0 | 9 | 1.4 | 0.0 | 59 |
| Equity | |||||||||
| Listed shares | 0.5 | -1.2 | 63 | 0.1 | -0.9 | 11 | 0.5 | -2.1 | 74 |
| Unlisted shares | 1.2 | -0.6 | 61 | 0.2 | 0.0 | 28 | 1.4 | -0.6 | 89 |
| Others shares | 0.5 | -0.1 | 24 | -0.2 | 0.3 | 25 | 0.3 | 0.2 | 49 |
| Investment | |||||||||
| Money market funds | 11.2 | -0.1 | 87 | 1.4 | 0.0 | 8 | 12.6 | -0.1 | 94 |
| Non money market funds | -2.8 | 10.6 | 621 | 0.5 | 0.5 | 39 | -2.3 | 11.0 | 659 |
| Financial derivatives | -0.3 | 7 | 0.0 | 0 | -0.3 | 7 | |||
| Total | -17.6 | 22.2 | 2,426 | 1.6 | 0.8 | 253 | -16.0 | 23.1 | 2,679 |
Breakdown of outstanding amounts of financial portfolio assets by type of assets![]()
After the implementation of a look-through approach3, debt securities account for 72% of insurers' portfolio, equities represent 15% and the remaining 13% is made up of mutual fund shares.
All instruments combined, 46% of the portfolio is invested in assets issued by residents, 41% in assets issued by non-residents and 13% in unallocated mutual fund shares.
Investments primarily finance the financial sector (33%, i.e. 16% for banks and other monetary financial institutions and 17% for financial corporations), general government (31%) and non-financial corporations (23%).
All instruments combined, 46% of the portfolio is invested in assets issued by residents, 41% in assets issued by non-residents and 13% in unallocated mutual fund shares.
Investments primarily finance the financial sector (33%, i.e. 16% for banks and other monetary financial institutions and 17% for financial corporations), general government (31%) and non-financial corporations (23%).
Breakdown of outstanding amounts of financial portfolio assets by geographical area![]()
Breakdown of outstanding amounts of financial portfolio assets by category of issuers![]()
3. The look-through approach consists, when the information is available, in replacing the resident mutual funds shares in the insurance portfolios by the final investments of mutual funds. The 13% residual amount correspond to these mutual funds shares (mainly non-resident) which cannot be allocated with this approach. After a look-through approach, the share of equities increases by +7 basis points (8% to 15%) and the one of debt securities by +12 basis points (60% to 72%).
Date of next publication: 9th April 2021
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PLA_ASS_2214_en__StatInfo_Assurances_T32020_EN.pdf