French life insurance units of account outpace euro funds in 2025

In 2025 French life‑insurance products showed a clear split in returns. Units of account (UC) delivered an average net performance of 4.7%, almost double the 2.6% achieved by traditional euro‑funds, according to the Observatoire des produits d'épargne financière (OPEF).

Among UC categories, equity‑linked funds performed best with an 8.05% return, while real‑estate UC lost 2.93%. Average annual management fees were 0.80% for freely managed UC, 1.08% for specialist‑managed UC, and 0.67% for euro‑funds. The report notes that over the past eight years UC returns have only marginally exceeded euro‑fund returns, despite higher risk.

The data underscores a long‑standing trade‑off for French savers: higher potential yields from UC come with greater volatility and no capital guarantee, whereas euro‑funds offer modest, protected returns.