Financial assets of insurance corporations - France 2022Q2
Published on the 7th of October 2022
Further decrease in valuations by 146 billion euros in the second quarter of 2022
At end-June 2022, financial assets of insurance corporations amount to €2,562 billion, down €142 billion over the quarter due to the sharp fall in assets valuation (- 146 billion) and more marginally an increase of positive net investments (+ 4 billion).
The decrease in valuations firstly concerns long-term debt securities (-92 billion) linked to a further rise in long-term rates (+97 basis points increase in the 10-year OAT in the second quarter). Valuations decline as well for non-money market fund shares (- €43 billion, of which - €36 billion in equity and mixed funds) and listed shares (- €10 billion) in connection with the downturn in equity markets in the second quarter (fall by -11% in the CAC40 index).
Net investments are mainly in non-money market fund shares for + 7 billion (in particular mixed funds and other funds, each for + 3 billion) and in money market fund shares for + 6 billion. Net sales are almost exclusively in debt securities (-13 billion) mainly issued in France by general government.
The decrease in valuations firstly concerns long-term debt securities (-92 billion) linked to a further rise in long-term rates (+97 basis points increase in the 10-year OAT in the second quarter). Valuations decline as well for non-money market fund shares (- €43 billion, of which - €36 billion in equity and mixed funds) and listed shares (- €10 billion) in connection with the downturn in equity markets in the second quarter (fall by -11% in the CAC40 index).
Net investments are mainly in non-money market fund shares for + 7 billion (in particular mixed funds and other funds, each for + 3 billion) and in money market fund shares for + 6 billion. Net sales are almost exclusively in debt securities (-13 billion) mainly issued in France by general government.
Security portfolio transactions (1) of insurance corporations (in billions of euros)
By category of issuers (2)
By geographical area
1. Debt securities, equities and investment fund shares
2. "Unallocated" is composed of bonds and equities issued outside the euro area.
2. "Unallocated" is composed of bonds and equities issued outside the euro area.
Financial assets of insurance corporations - 2nd quarter 2022![]()
(EUR billion, outstanding amounts at market prices at end of period, transactions, valuation effects during period)
| Life and composite IC | Non-Life IC | Total IC | |||||||
| Net flows | Valuation effect | Stocks | Net flows | Valuation effect | Stocks | Net flows | Valuation effect | Stocks | |
| Currency and depositis | 2.0 | 0.0 | 35 | -0.5 | 0.0 | 14 | 1.5 | 0.0 | 50 |
| Debt securities | |||||||||
| < ou= 1 year (original maturity) | -3.0 | 0.0 | 19 | -3.2 | 0.0 | 2 | -6.1 | 0.0 | 21 |
| >1 year (original maturity) | -7.9 | -85.3 | 1,223 | 1.3 | -6.8 | 108 | -6.6 | -92.2 | 1,331 |
| Loans | -1.0 | 0.0 | 50 | 0.4 | 0.0 | 11 | -0.6 | 0.0 | 60 |
| Equity | |||||||||
| Listed shares | -0.4 | -7.7 | 72 | -0.2 | -2.3 | 13 | -0.6 | -10.0 | 84 |
| Unlisted shares | 2.1 | -0.1 | 76 | 0.1 | -0.1 | 39 | 2.2 | -0.3 | 115 |
| Others shares | -0.2 | 0.2 | 26 | 0.2 | -0.4 | 28 | -0.1 | -0.2 | 54 |
| Investment | |||||||||
| Money market funds | 4.1 | -0.1 | 85 | 1.9 | 0.0 | 10 | 6.0 | -0.1 | 95 |
| Non money market funds | 6.7 | -41.6 | 705 | 0.0 | -1.5 | 40 | 6.7 | -43.1 | 745 |
| Financial derivatives | 1.6 | 6 | 0.0 | 0 | 1.7 | 6 | |||
| Total | 4.0 | -134.7 | 2,297 | 0.1 | -11.1 | 265 | 4.0 | -145.8 | 2,562 |
Breakdown of outstanding amounts of security portfolio by type of securities
After the implementation of a look-through approach (3), debt securities account for 66% of insurers' portfolio, equities represent 18% and the remaining 16% is made up of mutual fund shares.
All instruments combined, 43% of the portfolio is invested in assets issued by residents, 41% in assets issued by non-residents and 16% in unallocated mutual fund shares.
Investments primarily finance the financial sector (34%, i.e. 14% for monetary financial institutions and 20% for financial corporations), general government (26%) and non-financial corporations (24%).
All instruments combined, 43% of the portfolio is invested in assets issued by residents, 41% in assets issued by non-residents and 16% in unallocated mutual fund shares.
Investments primarily finance the financial sector (34%, i.e. 14% for monetary financial institutions and 20% for financial corporations), general government (26%) and non-financial corporations (24%).
Breakdown of outstanding amounts of security portfolio by geographical area![]()
Breakdown of outstanding amounts of security portfolio 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 16% 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 +8 basis points (10% to 18%) and the one of debt securities by +12 basis points (54% to 66%).
Date of next publication: 6th January 2023
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PLA_ASS_2247_en__StatInfo_Assurances_T22022_EN.pdf
Updated on the 6th of October 2022