Life Insurance Hits Record Deposits in October 2025: Massive Shift from Livret A

French life insurance (assurance vie) saw record 17.1 billion euros in deposits in October 2025, with net inflows up 40% year-over-year as savers flee low-yield Livret A

Record-Breaking Month for Assurance Vie

In October 2025, French life insurance policies attracted a staggering 17.1 billion euros in total deposits, marking the highest figure ever for an October. Net collections reached 5.1 billion euros, a sharp 2 billion euro increase from October 2024, fueled by savers seeking better returns amid falling rates on regulated accounts. This surge pushed year-to-date net inflows to 44.7 billion euros, with total contributions hitting 160.3 billion euros—a 10% rise over the prior year—driving the overall encours past 2,100 billion euros, up 6.5% annually.

Massive Exodus from Livret A

Savers pulled a record 3.81 billion euros from the Livret A in October—the largest October outflow since tracking began in 2009—while the LDDS saw 1.29 billion euros in net withdrawals. This shift stems from repeated rate cuts: from 3% early 2025, to 2.4% in February, and down to 1.7% since August. In contrast, life insurance funds in euros are projected to yield around 2.6% in 2025, offering a clear edge, with units de compte (riskier, higher-potential returns) drawing 4 billion euros and euros funds 1.1 billion euros that month.

Key drivers of the switch:
- Superior yields on assurance vie vs. shrinking Livret A rates.
- Tax advantages and diversification in life insurance portfolios.
- Growing confidence in funds en euros amid economic caution.

Strong Momentum Set to Continue

France Assureurs’ CEO Paul Esmein hailed life insurance as a “pillar of savings and the economy,” predicting net collections could top 50 billion euros for all of 2025—the highest since 2010. Assurential PER plans also boomed, with 1.056 billion euros net in October (up 11% YoY) and year-to-date inflows at 6.863 billion euros (up from prior year). For expats in France, this trend signals a prime time to review portfolios, as life insurance offers liquidity, inheritance benefits, and exposure to global markets via units de compte.

Why Expats Should Consider Assurance Vie Now

Fiscal perks: Favorable tax treatment after 8 years, ideal for long-term expat planning.
Flexibility: Mix safe euros funds with dynamic units de compte for growth.
Record growth context: Encours at 105.1 billion euros for PER alone, with 7.7 million policyholders.
English speakers living in France can explore providers like those boosted for 5% net yields on euros funds in 2025-2026 (under conditions).