Financial assets of insurance corporations - France 2024Q1
Published on the 11th of July 2024
In the first quarter of 2024, insurers and pension funds have increased
their investments in debt-related financial instruments
their investments in debt-related financial instruments
At the end of March 2024, financial investments by insurers and pension funds totalled €2,685 billion in stocks, up €36 billion compared with the end of 2023.
This increase was the result of both a €22 billion revaluation of assets and positive net investment flows of €14 billion.
Valuation increases mainly concerned equities (+€5.8bn) and equity fund units (+€15.7bn), in line with the CAC40's rise over the period (+8.8%). Conversely, long-term debt securities recorded a fall in valuation (-€5.8bn).
Before fund look-through, net purchases were mainly recorded for long-term debt securities (+€14.2 bn), money market funds (+€3.1 bn) and bond funds (+€4.0 bn). Conversely, insurers and pension funds recorded net sales of equities (-1.4 bn €), equity funds and mixed funds (-4.6 bn € and -3.2 bn € respectively).
After looking through French UCIs (see page 2), the outstanding amount of securities held by insurers and pension funds was primarily financing the financial sector excluding UCIs (38%, of which 16% for monetary financial institutions and 22% for financial companies), non-financial corporations (24%) and general government (22%). Debt securities made up 64% of the portfolio. Equities accounted for 20% of the portfolio. The remaining 16% was made up mainly of foreign investment fund shares issued abroad. 43% of the transparent portfolio was made up of securities issued in France, 41% of securities issued abroad and 16% of unallocated investment funds shares.
This increase was the result of both a €22 billion revaluation of assets and positive net investment flows of €14 billion.
Valuation increases mainly concerned equities (+€5.8bn) and equity fund units (+€15.7bn), in line with the CAC40's rise over the period (+8.8%). Conversely, long-term debt securities recorded a fall in valuation (-€5.8bn).
Before fund look-through, net purchases were mainly recorded for long-term debt securities (+€14.2 bn), money market funds (+€3.1 bn) and bond funds (+€4.0 bn). Conversely, insurers and pension funds recorded net sales of equities (-1.4 bn €), equity funds and mixed funds (-4.6 bn € and -3.2 bn € respectively).
After looking through French UCIs (see page 2), the outstanding amount of securities held by insurers and pension funds was primarily financing the financial sector excluding UCIs (38%, of which 16% for monetary financial institutions and 22% for financial companies), non-financial corporations (24%) and general government (22%). Debt securities made up 64% of the portfolio. Equities accounted for 20% of the portfolio. The remaining 16% was made up mainly of foreign investment fund shares issued abroad. 43% of the transparent portfolio was made up of securities issued in France, 41% of securities issued abroad and 16% of unallocated investment funds shares.
(EUR billion, outstanding amounts at market prices at end of period, transactions, valuation effects during period)
| Life and composite IC | Non-Life IC | Pension funds | |||||||
| Net flows | Valuations | Stocks | Net flows | Valuations | Stocks | Net flows | Valuations | Stocks | |
| Currency and depositis | 0.5 | 0.0 | 32.6 | 1.7 | 0.0 | 13.4 | 1.1 | 0.0 | 6.0 |
| Debt securities | 8.9 | -6.4 | 1131.6 | 2.5 | -0.9 | 115.6 | 1.7 | 1.6 | 102.7 |
| < ou= 1 year (original maturity) | -1.1 | 0.1 | 25.1 | 0.0 | 0.0 | 0.4 | 0.0 | 0.0 | 0.0 |
| >1 year (original maturity) | 10.0 | -6.5 | 1,106.6 | 2.5 | -0.9 | 115.2 | 1.7 | 1.6 | 102.7 |
| Loans | -0.9 | 0.0 | 61.7 | -0.3 | 0.0 | 14.7 | 0.1 | 0.0 | 1.3 |
| Equity | -1.5 | 4.0 | 189.5 | 0.2 | 1.4 | 86.8 | -0.1 | 0.4 | 13.6 |
| Listed shares | -1.4 | 4.2 | 68.9 | -0.2 | 1.7 | 15.9 | -0.1 | 0.5 | 6.4 |
| Unlisted shares | 0.5 | 0.1 | 69.8 | 0.2 | -0.7 | 38.9 | 0.0 | 0.0 | 2.4 |
| Others shares | -0.5 | -0.3 | 50.9 | 0.2 | 0.4 | 32.0 | -0.1 | -0.2 | 4.8 |
| Investment fund shares | 0.9 | 18.9 | 800.2 | 0.5 | 0.7 | 45.8 | -0.3 | 2.6 | 68.4 |
| Money market funds | 3.2 | 0.9 | 99.8 | 0.9 | 0.1 | 9.0 | -1.0 | 0.1 | 4.5 |
| Non money market funds | -2.3 | 18.0 | 700.4 | -0.4 | 0.6 | 36.8 | 0.7 | 2.6 | 60.2 |
| ow equity funds | -4.2 | 13.9 | 231.0 | -0.4 | 0.4 | 7.2 | 0.0 | 1.4 | 19.9 |
| ow fixed income funds | 3.6 | 0.3 | 135.9 | 0.0 | 0.1 | 10.1 | 0.4 | 0.1 | 7.9 |
| ox mixed funds | -3.2 | 4.7 | 175.5 | -0.1 | 0.1 | 8.6 | 0.1 | 1.0 | 23.1 |
| Financial derivatives | -0.9 | 0.0 | 5.2 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.9 |
| Total | 7.0 | 16.4 | 2,220.9 | 4.5 | 1.2 | 276.4 | 2.4 | 4.6 | 187.4 |
Within equities, other equity investments include share equivalents that cannot be traded on a regulated market
Security portfolio transactions (1) of insurance corporations and pension funds (in billions of euros) in 2024 Q1
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.
Breakdown of outstanding amounts of security portfolio after looking through UCIs
By category of issuers![]()
By geographical area![]()
By type of securities
1 The look-through approach consists, when the information is available, in replacing the French 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 foreign) which cannot be allocated with this approach. After a look-through approach, the share of equities increases by + 9 percentage points (11% to 20%) and the one of debt securities by + 14 percentage points (50% to 64%).
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Updated on the 10th of July 2024