The latest IRDAI data shows that assets of non-life insurers grew by a healthy 21% in FY 17-18. Their AUM grew from Rs. 2.22 lakh in FY2016-17 to Rs. 2.69 lakh crore last fiscal. If we exclude the re-insurers, the industry’s AUM stood at Rs. 2.18 lakh crore in FY 2017-18.
Mayank Bathwal, CEO, Aditya Birla Health Insurance Company feels that the growth in assets of non-life insurers is due to the large opportunity that exists on account of highly under penetrated market. The factors that played a crucial role in this growth are innovation in products, which led to newer customer segments. This further led to higher premium growth in the non - life insurance industry. “The general insurer assets have been growing at a healthy pace over past few years and this momentum is expected to stay going forward as newer players are entering the market, resulting in major expansion in the non-life insurance sector,” he added.
The industry’s assets were predominantly invested in approved investments (Rs. 85,388 crore) and government securities (Rs. 69,315 crore in central government securities and Rs. 54,754 crore in state government securities). Approved investment included listed equities with a dividend track record, corporate bonds and other debt securities.
PSU insurers held the top spots in terms of assets. New India, the country’s largest general insurance company, reported assets of Rs. 34,972 crore in FY2017-18. United India (Rs. 26,881 crore) and National (Rs. 21,590 crore) followed New India for the second and third spots.
Private general insurers accounted for 36% of the industry’s assets FY2017-18. Private insurers also recorded maximum increase in assets during last fiscal by adding Rs. 20,000 crore in its AUM kitty.
Among private players, ICICI Lombard (Rs. 17,471 crore), Bajaj Allianz (Rs. 13,963 crore) and HDFC Ergo (Rs. 8139 crore) grabbed the top three positions in terms of assets.
Foreign re-insurers who opened shop in India in early 2017, grew at a remarkable pace last fiscal adding Rs. 2,781 crore in assets. The reinsurance market is dominated by GIC, which holds 93% of the reinsurance assets of the industry.
General insurer AUM
|
Insurers |
FY17-18 |
FY 16-17 |
Change |
Change (%) |
|
Private Sector |
97202.27 |
78107.29 |
19094.98 |
24% |
|
Public Sector |
98610.28 |
84334.46 |
14275.82 |
17% |
|
Standalone health |
5777.66 |
4321.97 |
1455.69 |
34% |
|
Reinsurers |
47831.34 |
39426.45 |
8404.89 |
21% |
|
Specialised Insurers |
16076.03 |
15503.59 |
572.44 |
4% |
|
Foreign Reinsurers |
3431.21 |
649.89 |
2781.32 |
428% |
|
Total |
268928.79 |
222343.7 |
46585.14 |
21% |
Source: IRDAI
Market share of general insurance players
|
Insurers |
Market Share |
|
Private Sector |
36% |
|
Public Sector |
37% |
|
Standalone health |
2% |
|
Reinsurers |
18% |
|
Specialised Insurers |
6% |
|
Foreign Reinsurers |
1% |
|
Total |
100% |
Source: IRDAI