Life insurance: the Afer contract returned 1.70% in 2021

The Golden Income Trophy for years, the Affair life insurance contract has a net return of 1.70% in 2021, the same rate as in 2020. It performs well above the average market rate expected in 1.1% according to Le Revenu.

Neither down nor up. One of the largest French life insurance contracts, that of the association of savers Afer (56 billion euros in total for 756,000 members), announced this Thursday, January 13, 2022 a rate of return of 1.70 % net of management fees for its fund in euros for the year 2021.

“A stable return compared to 2020,” said Gérard Bekerman, president of the association, adding that 170 million euros have been set aside under the famous “provision pour participation aux beneficis”.

1.70% for the Affair versus 1.10% for the market

This revaluation rate is well above the average market rate, which should be set according to estimates by the Incomearound 1.10% in 2021 (and 1.30% for contracts selected by the Revenue editorial staff and awarded a Gold Revenue Trophy).

Does this herald a halt in falling rates? “I hope so!” Gérard Berkerman replied, however, recommending to members who can and wish to diversify their capital further by placing them on units of account.

Paying diversification

The multi-support contract Afer, insured by Abeille Vie (ex-Aviva) now in the lap of the Aema-Macif group, now has twenty-four units of account, four of which achieved more than 20% performance in 2021.

As for Afer Sfer, one of the largest units of account in France (5.5 billion euros outstanding!), It shows a remarkable performance of + 17% in 2021, ten times more than the euro fund! On the other hand, other units of account have disappointed, such as the Heritage Affair and those placed on bond funds.

A speech of diversification a priori heard by many members since the units of account represent 35% of the total payments made in 2021 on the Afer contract, a proportion that the president of the Afer aims to increase to 50%.

It should be noted that the Afer contract remains 100% accessible on the guaranteed euro fund, an increasingly rare advantage in the life insurance market.

+ 7.8% for Profil Équilibré du Revenu in 2021

Awarded the Golden Trophy for the best life insurance contracts by the writing of the Income in 2021, the Afer contract will certainly satisfy the readers of the Income who followed our allocation recommendations. Thus, our Prudent Profile (80% in euro funds and only 20% in units of account) shows a performance of + 4.6% in 2021 and the new Equilibré Profile (with 40% in units of account) of +7.8 % in a year. A performance far superior to inflation!

Good to know: Gérard Bekerman, who aims to increase the number of Afer members to more than one million in the coming years, has unveiled a project to set up a form of social participation for Afer members that would become “Companies”. A new idea to follow for this association which has just celebrated its 45th anniversary.

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