Definition:Assets under management
| Assets under management | |
|---|---|
| Abbreviation | AUM |
| Category | kpis; volume |
| Metric id | assets_under_management |
| Unit | currency |
| Related terms | Net investment income, Other revenue, Total revenue |
| Definition | Third-party plus general-account assets managed by the group's asset-management arm. |
Assets under management is the total market value of the investments that an insurance group's asset-management arm oversees, combining portfolios run for third-party clients with the group's own general-account assets. Commonly abbreviated AUM, it measures the scale of the investment business rather than the insurance business: where premium metrics count risk transferred, AUM counts capital entrusted. For diversified groups such as AXA, Allianz, or Generali, the figure spans mutual funds, institutional mandates, and the insurer's own reserves-backing portfolios.
Reported in currency at each closing date, the figure moves with four main drivers: net client inflows or outflows, market performance, currency translation, and scope changes such as acquisitions or disposals of management mandates. Disclosures typically split third-party assets from general-account and unit-linked assets, because the economics differ — third-party mandates generate management fees, usually a few basis points to tens of basis points on average AUM, while general-account assets generate investment income for the insurer itself. Asset-management fee revenue therefore scales almost mechanically with the average level of AUM over the period.
For an insurance group, a large asset-management arm changes the earnings mix in ways investors watch closely. Fee income is recurring, capital-light under solvency frameworks such as Solvency II, and largely uncorrelated with underwriting cycles, so it diversifies results away from claims volatility. Growth in AUM also signals distribution strength and client confidence, which is why groups report net flows alongside the headline stock. Conversely, sustained outflows or market drawdowns compress fee earnings quickly, making the metric an early indicator of pressure on the fee-based side of the business.