The life insurance industry has witnessed an impressive growth in its assets under management AUM in FY 2015-16.
The AUM of the life insurance industry went up by 11% from Rs.22.50 lakh crore in FY 2014-15 to Rs. 25.02 lakh crore in FY 2015-16, shows IRDAI annual report.
Barring ULIPs, life insurance business in traditional policies and pension plans have witnessed healthy growth last fiscal.
The AUM of life insurance policies, which includes traditional policies like whole life, endowment and money back, has reached close to Rs.17 lakh crore. The AUM of life insurance policies went up from Rs.14.95 lakh crore to Rs.16.97 lakh crore, a growth of 14% in FY 2015-16.
Similarly, the AUM of pension and general annuity (including group policies) increased to Rs.4.64 lakh crore last fiscal from Rs.3.89 lakh crore in FY 2014-15.
Surprisingly, the AUM of ULIPs, which regained traction in FY 2014-15, saw a decline last fiscal. Its AUM went down from Rs. 3.62 lakh crore in FY 2014-15 to Rs.3.42 lakh crore in FY 2014-16, a decline of 6%.
The growth has primarily come from growth in first year premium collection and improved persistency ratio.
In terms of AUM, LIC maintained its dominance by capturing 80% of market share in the life insurance industry. The AUM of state owned life insurance company recorded a growth of 12%, from Rs.17.86 lakh crore in FY 2014-15 to Rs.20.09 lakh crore in FY 2015-16. LIC alone has contributed close to Rs. one lakh crore to the industry’s new business premium kitty in FY 2015-16 compared to Rs. 41,000 crore of private insurers.
In terms of the percentage of growth, the AUM of LIC grew faster as compared to private counterparts. Private insurers have witnessed a growth of only 6% in AUM from Rs.4.61 lakh crore as on March 2015 to Rs.4.92 lakh crore as on March 2016.
Among the top ten private insurers, ICICI Prudential retained its top position with AUM of over Rs.1 lakh crore (4% growth) while SBI Life stood at second position with AUM of Rs.79,455 crore (12% growth). Max Life Insurance recorded the highest growth of 16% respectively in their AUMs.
Barring Tata AIA, all other life insurers witnessed a growth of over 12% in their AUM last fiscal.
Top ten life insurers in terms of AUM
|
INSURER |
TOTAL VALUE OF AUM 2015-16 (in Rs crore) |
TOTAL VALUE OF AUM 2014-15 (in Rs crore) |
Change |
|
LIC |
2009118 |
1786312 |
12% |
|
ICICI Prudential |
101790 |
97875 |
4% |
|
SBI Life |
79455 |
70773 |
12% |
|
HDFC Standard |
74249 |
67002 |
11% |
|
Bajaj Allianz |
43884 |
43157 |
2% |
|
MAX Life |
35804 |
30960 |
16% |
|
Birla Sunlife |
30742 |
30045 |
2% |
|
TATA AIA |
18987 |
19522 |
-3% |
|
Kotak Mahindra |
16776 |
15050 |
11% |
|
PNB Metlife |
13475 |
12736 |
6% |
|
Private Total |
415162 |
387120 |
7% |
|
Total |
2424280 |
2173432 |
12% |
|
Industry Total |
2502068 |
2247522 |
11% |
Source: IRDAI