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The Office of the Commissioner of Insurance (OCI) today (June 3) released provisional statistics of the Hong Kong insurance industry for the first quarter of 2009.
In the first quarter of 2009, gross and net premiums of general insurance business recorded a modest growth of 3.9% to HK$7.940 billion and 3.1% to HK$5.647 billion respectively compared with the corresponding period in 2008, while overall underwriting performance improved slightly from a profit of $638 million to $694 million.
On direct business, gross and net premiums gained 4.4% to $6.520 billion and 5.9% to $4.861 billion respectively in the first quarter of 2009, propelled again by Accident & Health business, gross and net premiums of which were $2.324 billion and $2.028 billion respectively, as well as construction-related Employees¡¦ Compensation business whose gross and net premiums were $363 million and $319 million respectively.
The underwriting profit of direct business was boosted from HK$261 million to HK$483 million in the first quarter of 2009. Specifically, Medical business reported a surge in profit from $43 million to $88 million due to sustained premium growth, whereas losses registered by Non-Statutory Ships business diminished from $110 million to $2 million because of better claims experience. In the meantime, Employees¡¦ Compensation business trimmed its losses from $83 million to $3 million through release in claims reserve. Motor Vehicle business continued to be hindered by price competition, incurring a loss of $28 million against a marginal profit of $2 million for the same period last year.
On reinsurance inward business, gross premiums edged up by 1.7% to $1.420 billion while net premiums declined by 11.7% to $786 million in the first quarter of 2009. The underwriting profit dropped from $377 million to $211 million, reflecting a smaller release of claims reserve compared with last year.
Total revenue premiums of long term in-force business was HK$37.009 billion in the first quarter of 2009, decreasing by 21.3% over the same period in 2008.
The revenue premiums of Individual Life and Annuity (Non-Linked) business went down by 5.9% to $20.812 billion and Individual Life and Annuity (Linked) business plunged 54.2% to $8.109 billion. Contributions of Retirement Scheme business grew by 13.9% to $7.246 billion. Total insurance benefits paid to individuals sank 3.5% to $14.203 billion.
New office premiums (excluding Retirement Scheme business) of long term business for the first quarter of 2009 receded significantly by 60.5% to $8.544 billion compared with the same period in 2008, attributable to 24.2% drop in Individual Life and Annuity (Non-Linked) business that made up $6.223 billion and 83.5% drop in Individual Life and Annuity (Linked) business that accounted for $2.198 billion.
In respect of new policies issued to Mainland visitors, office premiums amounted to $0.539 billion, representing 6.4% of total new office premiums ($8.475 billion) for individual business in the first quarter of 2009.
A summary of provisional statistics of the Hong Kong insurance business from January 2009 to March 2009 is at Annex. Further details can be downloaded from the OCI¡¦s website: (http://www.oci.gov.hk).
Ends/Wednesday, June 3, 2009
Issued at HKT 15:01
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