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The Office of the Commissioner of Insurance (OCI) today (August 31) released provisional statistics of the Hong Kong insurance industry for the first half of 2010.
In the first half of 2010, gross and net premiums of general insurance business recorded a double-digit growth of 14.5% to $16.6 billion and 11.8% to $11.7 billion respectively compared with the corresponding period in 2009 with the overall underwriting profit at $1.3 billion, which is on a par with that of 2009.
On direct business, gross and net premiums gained 9.4% to $12.8 billion and 8.2% to $9.5 billion respectively in the first half of 2010 compared with the corresponding period in 2009, propelled again by Accident and Health business (comprising Medical business), gross and net premiums of which were $4.4 billion and $3.7 billion respectively. Other major classes of business, including Employees¡¦ Compensation, Motor Vehicle, Pecuniary Loss and Property Damage businesses, also contributed to the premium growth. Their gross and net premiums were $2.0 billion and $1.7 billion, $1.4 billion and $1.2 billion, $818 million and $525 million, and $1.8 billion and $1.0 billion respectively.
The underwriting profit of direct business increased from $925 million to $962 million. The profit of Pecuniary Loss business significantly rose from $56 million to $288 million, driven by the strong premium growth in mortgage guarantee business and lower claims for credit business. Motor Vehicle business also showed a material improvement in its underwriting result essentially attributable to premium rates increase as well as better claims experience with the claims incurred figures of an insurer placed in liquidation excluded. Reduction in profit was however recorded in Property Damage business as a result of poor claims experience, and the profit fell from $318 million to $132 million.
On reinsurance inward business, gross and net premiums boosted from $2.8 billion to $3.8 billion and from $1.7 billion to $2.2 billion respectively in the first half of 2010 compared with the corresponding period in 2009. Nevertheless, the underwriting profit dropped from $368 million to $311 million due to adverse claims experience.
Total revenue premiums of long term in-force business was $84.0 billion in the first half of 2010, increasing by 12.3% over the same period of 2009.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business increased by 20.9% to $51.6 billion and by 17.4% to $20.4 billion respectively. Contributions of Retirement Scheme business plunged by 18.4% to $10.8 billion. Total insurance benefits paid to individuals increased by 26.7% to $35.7 billion.
New office premiums (excluding Retirement Scheme business) of long term business for the first half of 2010 increased significantly by 46.0% to $28.5 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, with the former increasing by 49.3% to $19.8 billion and the latter increasing by 41.4% to $8.5 billion.
In respect of new policies issued to Mainland visitors, office premiums amounted to $2.1 billion, representing 7.3% of the total new office premiums ($28.4 billion) for individual business in the first half of 2010.
A summary of the provisional statistics of the Hong Kong insurance business for the first half of 2010 is at the Annex. Further details can be downloaded from the OCI¡¦s website: www.oci.gov.hk.
Ends/Tuesday, August 31, 2010
Issued at HKT 15:00
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