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The Office of the Commissioner of Insurance (OCI) today (May 31) released provisional statistics of the Hong Kong insurance industry for the first quarter of 2010.
In the first quarter of 2010, gross and net premiums of general insurance business recorded a significant growth of 16.2% to $9.2 billion and 14.4% to $6.5 billion respectively compared with the corresponding period in 2009. Overall underwriting performance however recorded a decline in profit from $694 million to $559 million.
On direct business, gross and net premiums gained 6.9% to $7.0 billion and 6.4% to $5.2 billion respectively in the first quarter of 2010 compared with the corresponding period in 2009, propelled again by Accident & Health business (comprising Medical business) whose gross and net premiums were $2.6 billion and $2.2 billion respectively. Other major classes of business also contributed to the premium growth, including Property Damage business with gross and net premiums of $901 million and $483 million respectively, Motor Vehicle business with gross and net premiums of $677 million and $562 million respectively, and Employees' Compensation business with gross and net premiums of $1.0 billion and $834 million respectively.
The underwriting profit of direct business declined from $483 million to $383 million as overall claims experience worsened in the first quarter of 2010 compared with the corresponding period in 2009. The profit of Medical business and General Liability (Non-Statutory) business contracted from $88 million to $16 million and from $82 million to $31 million respectively whilst the loss of Employees' Compensation business and Ships (Non-Statutory) business widened from $3 million to $50 million and from $2 million to $37 million respectively. Motor Vehicle business, on the other hand, showed a material improvement in its underwriting result essentially attributable to better claims experience, with the claims incurred figures of an insurer that has been placed in provisional liquidation excluded.
On reinsurance inward business, gross and net premiums boosted from $1.4 billion to $2.3 billion and from $786 million to $1.3 billion respectively in the first quarter of 2010 compared with the corresponding period in 2009. Nevertheless, the underwriting profit dropped from $211 million to $175 million due to adverse claims experience.
Total revenue premiums of long-term in-force business was $40.4 billion in the first quarter of 2010, increasing by 9.3% over the same period in 2009.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business increased by 17.9% to $24.5 billion and by 22.0% to $9.9 billion respectively. Contributions of Retirement Scheme business plunged by 26.4% to $5.3 billion. Total insurance benefits paid to individuals increased by 3.4% to $14.7 billion.
New office premiums (excluding Retirement Scheme business) of long-term business for the first quarter of 2010 increased significantly by 50.0% to $12.8 billion compared with the same period in 2009. Both Individual Life and Annuity (Non-Linked) and Individual Life and Annuity (Linked) business recorded significant premium growth: the former increased by 40.3% to $8.7 billion and the latter increased by 82.1% to $4.0 billion in terms of new office premiums.
In respect of new policies issued to Mainland visitors, office premiums amounted to $0.9 billion, representing 7.1% of the total new office premiums ($12.8 billion) for individual business in the first quarter of 2010.
A summary of provisional statistics of the Hong Kong insurance business for the first quarter of 2010 is at the Annex. Further details can be downloaded from the OCI's website: www.oci.gov.hk
Ends/Monday, May 31, 2010
Issued at HKT 15:00
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