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Insurance Life insurance AUM reaches Rs.33 lakh crore as on December 2017

Life insurance AUM reaches Rs.33 lakh crore as on December 2017

Increase in new business premium and increased persistency ratio have helped the life insurance industry record 18% growth in its AUM.
Team Cafemutual May 22, 2018

2017 ended on a good note for the life insurance industry. Life Insurance Council data shows that the total assets under management (AUM) of the life insurance industry went up by 18% from Rs.28 lakh crore in December 16 to Rs.33 lakh crore in December 2017.

Industry officials believe the rally in equity markets coupled with healthy premium collection has accelerated AUM growth in the life insurance industry.

Vignesh Sahane, CEO, IDBI Federal Life said that this growth is largely due to new business, consistent renewals and rise in stock market performance.

All three categories of life insurance business – traditional policies, pension and ULIPs – witnessed healthy growth last fiscal. Thanks to demonetisation, many people invested in insurance to park their money and save taxes.

The council data shows that investment in equity through ULIPs went up by 30% to reach Rs.8.70 lakh crore as on December 2017 from Rs.6.68 lakh crore. Industry officials also said that many investors lapped up ULIPs last fiscal due to attractive performance of such schemes over the past few years.

The life insurance industry has been gaining continuous momentum. IRDAI’s data shows that life insurers’ new business premium rose by 19% and crossed Rs.1.38 lakh crore in April-December 2017 while the renewal premium of industry grew 9% from Rs.1.60 lakh crore in December 2016 to Rs.1.75 lakh crore in December 2017.

AUM under asset class as on December 2017

Asset class

AUM as on Dec 2017

AUM as on Dec 2016

Absolute change

Percentage change

Equity

869222

668786

200436

30%

Fixed income

2396086

2095084

301002

14%

Others

55602

59212

-3610

-6%

Total

3320910

2823082

497828

18%

 

Source: Life Insurance Council

 

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