Return on life insurance contracts set to decline

Standard & Poor's is expecting a drop in the return of life insurance contracts. Despite the crisis, the latter remained at important levels nearing 3.90% in average for the contracts issued in Euros in 2008. Yet, despite the recovery of the financial markets, the situation has been different in 2009: interest rates have evolved, competition on passbooks has dwindled while insurers are seeking to increase their reserves. These factors are contributing to the decrease in the rates used in 2009.