The non-life insurance industry witnessed a growth in its assets under management (AUM) in FY 2015-16.
IRDAI states the AUM of non-life insurance industry went up by 9% from Rs.1.60 lakh crore in the FY 2014-15 to Rs.1.75 lakh crore in 2015-16.
Major chunk of investments was made in approved investments that stood at Rs.53, 732 crore followed by central government securities and infrastructure investments at Rs.46, 985 crore and Rs.30, 010 crore respectively. The investments made in state government securities was recorded at Rs.20, 150 crore while that of housing and loans to state government stood at Rs.18, 023 crore.
PSU players contributed close to 44% to the total AUM while private insurers had a share of 35%.
Among the PSU insurers, New India, country’s largest general insurance company, has the highest AUM of Rs.26, 180 crore followed by United India at Rs.19, 655 crore, Oriental at Rs.12, 214 crore and National at Rs.17, 142 crore. Barring Oriental Insurance, the remaining insurers recorded an increase in their AUM.
ICICI Lombard recorded the highest AUM of Rs.11, 257 crore in FY 2015-16 amidst the private insurers. The second position was retained by Bajaj Allianz with AUM of Rs.8934 crore. SBI General recorded the highest growth rate of 23% amongst private players - from Rs.2, 667 crore in FY 2014-15 to Rs.3, 304 crore in FY 2015-16.
The AUM of standalone health (private) insurers increased by 30% from Rs.2, 371 crore to Rs.3, 090 crore, shows IRDAI annual report.
K. G. Krishnamoorthy Rao, CEO, Future Generali India Insurance Company Limited believes, “The rise in non-life insurance AUM is largely due to the overall growth in the industry. The growth rate in terms of investment has been recorded as the highest in FY 2015-16. It is attributed to the rise in economic activities like major investments in infrastructure, rise in crop insurance and health insurance mainly.”