According to the latest data released, the total assets under management (AUM) of life insurers rose 9 per cent to the level of Rs. 16,18,544 crore during the financial year 2012 compared to Rs. 14,82,549 crore recorded in the previous fiscal.
The impressive 9 per cent growth dispels concerns that the industry is facing a slowdown. However, the figures also showed that the total premium in the industry fell 3 per cent to Rs. 2,83,315 crore during the financial year compared Rs. 2,91,605 crore, according to the provisional data released by the Life Insurance Council, the industry body for all life insurance companies.
The data also showed that the total new business premium received by the companies in the country recorded a strong growth of 9.5 per cent to Rs. 1,13,678 crore compared with Rs. 1,25,618 crore. The linked new business fell 67 per cent to R17,455 crore compared to Rs. 52,739 crore while Non-linked new business premium recorded a growth of 32 per cent to Rs. 96,224 crore compared to Rs. 72, 878 crore.
Secretary-general of Life Insurance Council SB Mathur said, “This drop in total premium can be attributed to the change in regulatory roadmap, declining number of products and disappearance of pension business in the individual segment.”
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