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The Office of the Commissioner of Insurance (OCI) today (December 2) released provisional statistics of the Hong Kong insurance industry for the first three quarters of 2009.
In the first three quarters of 2009, gross and net premiums for general insurance business recorded a modest growth of 2.9% to HK$21.5 billion and 4.3% to HK$15.6 billion respectively compared with the corresponding period in 2008. Overall underwriting performance also improved from a profit of $814 million to $2.0 billion.
On direct business, gross and net premiums gained 2.8% to $17.4 billion and 4.6% to $13.1 billion respectively in the first three quarters of 2009 compared with the corresponding period in 2008, driven again by Accident & Health business (comprising Medical business) whose gross and net premiums reached $6.0 billion and $5.2 billion respectively, as well as construction-related Employees' Compensation business whose gross and net premiums were $851 million and $711 million respectively. The overall business growth was nevertheless offset by the fall in gross and net premiums of Goods in Transit business to $638 million and $411 million respectively.
The underwriting profit of direct business boosted from HK$130 million to HK$1.2 billion in the first three quarters of 2009 compared with the corresponding period in 2008, due to favourable claims experience. Specifically, Property Damage business reported a profit of $401 million as compared with $24 million for the same period of 2008 when severe losses were inflicted by tropical storms; whilst Employees' Compensation business turned from a loss of $375 million to a profit of $21 million. There was also a significant reduction in the underwriting loss for Motor Vehicle business primarily due to improvement in claims experience.
On reinsurance inward business, compared with the same period in 2008, gross and net premiums increased by 3.2% to $4.1 billion and 3.1% to $2.5 billion respectively in the first three quarters of 2009. During the same period, underwriting profit improved from $684 million to $793 million mainly due to improvement in claims experience.
Total revenue premiums of long term in-force business was HK$117.1 billion in the first three quarters of 2009, decreasing by 11.1% over the same period of 2008.
Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 7.8% to $68.1 billion whereas Individual Life and Annuity (Linked) business plunged 42.7% to $27.7 billion. Contributions of Retirement Scheme business grew by 5.7% to $18.9 billion. Total insurance benefits paid to individuals decreased by 5.5% to $42.4 billion.
New office premiums (excluding Retirement Scheme business) of long term business for the first three quarters of 2009 decreased significantly by 37.5% to $33.9 billion compared with the same period in 2008, mainly due to a reduction in Individual Life and Annuity (Linked) business premiums by 68.4% to $10.6 billion. This notwithstanding, new office premiums for Individual Life and Annuity (Non-Linked) business increased by 13.3% to $22.9 billion.
In respect of new policies issued to Mainland visitors, office premiums amounted to $2.0 billion, representing 6.1% of the total new office premiums ($33.7 billion) for individual business in the first three quarters of 2009.
A summary of provisional statistics of the Hong Kong insurance business from January to September 2009 is at the Annex. Further details can be downloaded from the OCI's website: www.oci.gov.hk.
Ends/Wednesday, December 2, 2009
Issued at HKT 15:00
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