Eurocroissance fund
A life insurance investment option whose capital guarantee, full or partial, applies only at a maturity of at least eight years, allowing the insurer to invest more in growth assets than a euro fund.
The euro fund guarantees capital at all times, which forces the insurer to hold mostly bonds and limits returns. Eurocroissance moves that guarantee to a chosen maturity of at least eight years: the saver is assured of recovering at that date all or part of their payments, depending on the guarantee level selected, but the value of the savings may fluctuate before then. Freed from part of the constraint of a permanent guarantee, the insurer can invest more in equities, real estate or private equity, hoping for a higher return. The 2019 reform simplified the product by expressing savings in units whose value is published, to make it clearer and more comparable. For the insurer, eurocroissance consumes less solvency capital than a euro fund, since the guarantee is due only at maturity, which explains regulators' interest in this intermediate option between the euro fund and unit-linked funds.
Created in 2014 and then reformed by the PACTE Act of May 22, 2019, the eurocroissance fund guarantees, for example, a saver who invests 50,000 euros in 2025 with an 80% guarantee over ten years that they will recover at least 40,000 euros in 2035.
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