*********************************************************
The Office of the Commissioner of Insurance (OCI) today (October 10) released the Hong Kong insurance business statistics for 2007 based on audited returns and actuarial information submitted by insurers.
In 2007, total gross premiums of the Hong Kong insurance industry grew by 26.4% to reach HK$197.287 billion, representing about 12.2% of the Hong Kong Gross Domestic Product, rising from 10.6% in 2006.
General insurance business recorded an increase of gross premiums by 5.7% to $24.271 billion while net premiums upped by 5.3% to $17.058 billion when compared with 2006, with the overall retention ratio dipping slightly from 70.6% to 70.3% in 2007. This outcome was driven by Accident & Health business (comprising Medical business) whose gross premiums surged by 16.4% to $6.241 billion, representing about one-fourth of the total pool. General Liability business (comprising Employees' Compensation business) and Property Damage business held stable with gross premiums of $5.784 billion and $5.306 billion respectively. Pecuniary Loss business (comprising Mortgage Guarantee business) recorded a rise of 23.9% in gross premiums to $1.500 billion but Motor Vehicle business suffered a drop of 5.3% in gross premiums to $2.653 billion compared with $2.801 billion in 2006 due to intensive price competition.
The overall underwriting performance of general insurance business improved from a profit of $2.067 billion to $2.398 billion in 2007, attributable to better claims experience as well as release in claims reserve. Net claims incurred ratio was 49.6% compared with 51.0% in 2006.
Property Damage business contributed the largest share of $783 million to underwriting profit, followed by General Liability business with $489 million, Pecuniary Loss business with $353 million, and Accident & Health business with $324 million. As for the two major compulsory classes, the profit of Motor Vehicle business shrank significantly from $158 million to $11 million while the loss accrued by Employees¡¦ Compensation business widened from $85 million to $164 million.
For long-term insurance business, office premiums of new Individual Life business leaped by 52.8% to $80.244 billion, adding some 1,100,099 new policies in 2007. New office premiums for Individual Life (Non-Linked) business lowered by 2.9% to $19.971 billion, whereas Individual Life (Linked) business burgeoned by 88.7% to $60.273 billion.
In respect of in force long-term business, total office premiums gained 30.0% from $133.087 billion in 2006 to $173.016 billion in 2007. Individual Life remained the dominant line of business, making up $153.067 billion or 88.5% of the total; the corresponding number of polices stood at 7.7 million, carrying net liabilities of $510.225 billion.
Yearly contributions for Retirement Scheme contracts administered by insurers went up by 10.6% to $16.188 billion. At the end of 2007, there were 70,295 Retirement Scheme contracts carrying net liabilities of $145.686 billion.
In force office premiums of Group Life business rose by 8.0% to $1.411 billion, whereas the number of policies increased by 4.9% to 16,425 and net liabilities decreased by 6.0% to $561 million respectively.
In force office premiums of Annuity and other businesses (comprising mainly Permanent Health business) grew by 5.2% to reach $2.350 billion, accounting for 1.4% of the total in respect of long term insurance business.
The detailed statistics, including industry aggregates and those of individual insurers, are available from the website of OCI at http://www.oci.gov.hk
Ends/Friday, October 10, 2008
Issued at HKT 15:00
NNNN
