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The Office of the Commissioner of Insurance today (May 30) released provisional statistics of the Hong Kong insurance industry for the first quarter of 2014.
Total gross premiums of the Hong Kong insurance industry in the first quarter of 2014 amounted to $81.7 billion, representing an increase of 12.8 per cent over the corresponding period in 2013.
The total amount of revenue premiums of long term in-force business was $69.1 billion in the first quarter of 2014, increasing by 15.1 per cent over the same period of 2013.
Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 24.4 per cent to $51.6 billion, whereas Individual Life and Annuity (Linked) business decreased by 10.8 per cent to $12.2 billion. Contributions of Retirement Scheme business dropped slightly by 0.7 per cent to $4.1 billion.
New office premiums (excluding Retirement Scheme business) of long term business for the first quarter of 2014 increased by 21.5 per cent to $27.4 billion compared with the same period of 2013. In terms of new business premiums, Individual Life and Annuity (Non-Linked) business increased by 35.6 per cent to $23.8 billion. On the other hand, new office premiums of Individual Life and Annuity (Linked) business decreased by 31.1 per cent to $3.4 billion.
In respect of policies issued to Mainland visitors, new office premiums amounted to $4.9 billion, representing 18.2 per cent of the total new office premiums ($27.2 billion) for individual business in the first quarter of 2014.
In the first quarter of 2014, gross premiums of general insurance business recorded a growth of 1.6 per cent to $12.6 billion whilst net premiums recorded a decline of 1 per cent to 8.7 billion compared with the corresponding period in 2013. Overall underwriting profit increased from $657 million to $902 million.
On direct business, gross and net premiums grew 3.3 per cent to $9.8 billion and 1.5 per cent to $7.2 billion respectively in the first quarter of 2014 compared with the corresponding period in 2013, mainly driven by Ships business and Motor Vehicle business. The former recorded a growth in gross premiums from $812 million to $1.2 billion while the latter recorded a growth in gross premiums from $868 million to $971 million.
The underwriting profit of direct business increased to $717 million in the first quarter of 2014 from $673 million in the corresponding period in 2013. The underwriting profit of General Liability business rose from $34 million to $134 million. However, such increase was partly offset by a fall in underwriting profit of Motor Vehicle business from $83 million to $14 million.
On reinsurance inward business, gross and net premiums decreased from $2.9 billion to $2.8 billion and from $1.7 billion to $1.5 billion respectively in the first quarter of 2014 compared with the corresponding period in 2013. Nevertheless, the underwriting performance turned from a loss of $15 million to a profit of $185 million due to improved claims experience.
A summary of provisional statistics of the Hong Kong insurance business for the first quarter of 2014 is at annex. Further details can be downloaded from the website of the Office of the Commissioner of Insurance: www.oci.gov.hk.
Ends/Friday, May 30, 2014
Issued at HKT 15:00
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