Financial investments reach an historic high in the first half of 2019

The June economic outlook report for household savings provides an overview of the first half of 2019

New savings inflows (life insurance included) stood at €43.7 billion in the first half of 2019 (excluding financial securities), reaching a first-six-month level unparalleled for more than fifteen years. These new inflows were driven by extremely high additions to sight deposits (+€25.4 billion) along with passbook savings accounts (+€17 billion) and life insurance. 

Deposits on home savings plans stagnated (+€0.6 billion) while the outflow of fixed-term investments had a marginal impact on total inflows (-€1.4 billion). Aggregate new investment in life insurance since January amounted to €15.4 billion (+28% compared with 2018), the best performance since 2011. While unit-linked life insurance inflows (+€8.8 billion) were lower than in H1 2018 (-34%), new euro-denominated investments were much higher as they were positive and even unparalleled since 2010 (+€6.6 billion). The fine performance achieved by life insurance is consequently based on a more evenly balanced fund inflow structure. 

Fiscal measures in support of purchasing power, the decline in inflation and the continued buoyant distribution of credit (all pursued in a savings-friendly environment) can explain this record-breaking performance achieved by household investments.