**********************************************************
The Office of the Commissioner of Insurance (OCI) today (March 15) released provisional statistics for the Hong Kong insurance industry in 2011.
Total gross premiums of the Hong Kong insurance industry in 2011 amounted to $225.8 billion, representing an increase of 9 per cent over 2010.
In 2011, gross and net premiums of general insurance business recorded a growth of 10.7 per cent to $34.7 billion and 8.5 per cent to $23.8 billion respectively compared with 2010. Overall underwriting profit also recorded an increase from $2.6 billion in 2010 to $3 billion in 2011.
On direct business, gross and net premiums gained 6.4 per cent to $25.6 billion and 6.3 per cent to $18.8 billion respectively in 2011 compared with 2010. Accident and Health business (comprising Medical business) continued to grow, with gross and net premiums reaching $8.9 billion and $7.4 billion respectively. General Liability business (comprising Employees' Compensation business) and Motor Vehicle business also contributed to the premium growth. The former recorded gross and net premiums of $6.6 billion and $4.8 billion respectively, while the latter recorded premiums of $3.2 billion and $2.6 billion respectively. However, owing to the slowdown in property transactions, gross and net premiums of Pecuniary Loss business (comprising Mortgage Guarantee business) dropped by 21.4 per cent and 37.7 per cent to $1.3 billion and $677 million respectively.
Direct business managed to sustain an underwriting profit of $1.9 billion in 2011, similar to that of 2010. The underwriting profit of Motor Vehicle business shrank significantly from $157 million to $42 million and the underwriting loss of Ships business worsened from $38 million to $142 million due to deterioration in claims experience. This negative impact, however, was largely offset by the underwriting profit of Pecuniary Loss business, which surged from $543 million to $744 million due to release of claims reserve.
On reinsurance inward business, gross and net premiums grew from $7.3 billion to $9.1 billion and from $4.2 billion to $5 billion respectively in 2011 compared with 2010, primarily attributable to the premium growth in the Property Damage, General Liability and Pecuniary Loss businesses. Such premium growth also drove the underwriting profit up from $702 million to $1.1 billion.
The total revenue premium of long term in-force business was $191.1 billion in 2011, increasing by 8.7 per cent over 2010.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business increased by 19.1 per cent to $126.1 billion and by 9.2 per cent to $48.6 billion respectively. However, Retirement Scheme business plunged by 39.9 per cent to $13.8 billion.
New office premiums (excluding Retirement Scheme business) of long term business for 2011 increased by 19.5 per cent to $70.5 billion compared with 2010. Both Individual Life and Annuity (Non-Linked) and Individual Life and Annuity (Linked) business recorded premium growth, with the former increasing by 27.8 per cent to $49.4 billion and the latter increasing by 3.9 per cent to $20.8 billion in terms of new office premiums.
In respect of new policies issued to Mainland visitors, office premiums amounted to $6.3 billion, representing 9 per cent of the total new office premiums ($70.3 billion) for individual business in 2011.
A summary of provisional statistics for the Hong Kong insurance industry in 2011 is at annex. Further details can be downloaded from the OCI's website: www.oci.gov.hk.
Ends/Thursday, March 15, 2012
Issued at HKT 15:01
NNNN
