Market round up: Asia-Pacific private financial wealth grows
In other news, robust growth in private sector insurance, India’s marine exports hit a high in fiscal year 2017
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Global private financial wealth grew by 5.3% to $166.5 trillion in 2016, led by higher economic growth and strong equity markets in many parts of the world, according to the Global Wealth 2017 report by the Boston Consulting Group. Asia-Pacific saw the highest growth at 9.5% but this was lower than the previous year’s 12.3% growth. Slower growth in China affected the wealth of countries such as Australia, the report said. India posted a 12% growth in private client wealth, reaching the $2 trillion level, with most of the expansion coming from new household savings. The report says significant growth in wealth is projected in India, contributing to Asia-Pacific’s growth, which is expected to increase by 9.9% annually till 2021, compared to the world’s 6% annual increase.
Robust growth in private sector insurance
Private sector insurance clocked a strong 42% year-on-year growth in annual premium equivalent (APE) for the month of May, led by ICICI Prudential, according to Edelweiss Securities Ltd. This translated into a strong 24% growth for the industry although the country’s largest firm Life Insurance Corporation of India, which controls nearly half the market share, posted a 4% growth in APE. Another interesting development is the 32% growth in ticket size (quantum of insurance) that drives premium growth too. The post-demonetisation period appears to have seen an increase in flows towards financial savings which has contributed to healthy growth, according to Edelweiss.
India’s marine exports hit a high in fiscal year 2017
India’s marine exports touched an all-time-high of $5.78 billion in fiscal year 2017, said a recent CARE Ratings report. The surge in exports was on the back of robust demand for frozen shrimps in the international market. In the marine export basket, frozen shrimps have the lion’s share; they contributed 65% of the total value of marine exports in the last fiscal year. The Indian fisheries industry is a substantial foreign exchange earner and accounted for 2% of total export earnings in the last four fiscal years, said the report.