The real estate crisis is affecting life insurance policies.

Capimmo, a leading real estate company, is down about 12% since the beginning of the year. Its problems could cause distrust in the entire sector.

Life insurance and real estate have formed a winning combination in recent years.

Real estate funds have offered stable and attractive returns with limited risk. For the most cautious savers, it was an ideal way to diversify. Because of this, real estate shares accounted for just under 10% of total investments at the end of 2022.

In the beginning, life insurance fundraising occurred primarily through real estate investment-type partnerships (SCPIs), followed by stock partnerships (SCs) and sales agencies''Thematic products specializing, for example, in health care or the right to use property for life dependency.

Capimmo (managed by Primonial REIM France) is a leader in the sector:

Founded in 2007, SCI had a capitalization of over €7 billion by the end of June and was represented in 169 life insurance contracts, according to Funds360. However, it has a particularly worrying future.

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Since the beginning of the year, SCI has lost 11.58% (as of November 17). This precipitous drop occurred despite the fund distributing between 2.50% and 5% of net income (excluding contract expenses) each year. This decline did not go unnoticed by investors who sold their stakes en masse: in the first nine months of the year, €666 million was withdrawn from SCI. Along with the fall in value, its