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Market performance of Hong Kong insurance industry for first quarter of 2015
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     The Office of the Commissioner of Insurance today (May 29) released provisional statistics of the Hong Kong insurance industry for the first quarter of 2015.

     Total gross premiums of the Hong Kong insurance industry in the first quarter of 2015 amounted to $94.8 billion, representing an increase of 16.1 per cent over the corresponding period in 2014.

     The total amount of revenue premiums of long term in-force business was $81.8 billion in the first quarter of 2015, increasing by 18.5 per cent over the same period in 2014. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 23.6 per cent to $63.7 billion whereas Individual Life and Annuity (Linked) business decreased by 2.1 per cent to $11.9 billion. Contributions of Retirement Scheme business grew by 18.9 per cent to $4.8 billion.

     New office premiums (excluding Retirement Scheme business) of long term business for the first quarter of 2015 increased by 33.3 per cent to $36.5 billion compared with the same period in 2014. Both Individual Life and Annuity (Non-Linked) and Individual Life and Annuity (Linked) business recorded premium growth, with the former increasing by 34.9 per cent to $32.1 billion and the latter increasing by 25.5 per cent to $4.2 billion in terms of new office premiums.

     In respect of policies issued to Mainland visitors, new office premiums amounted to $6.8 billion, representing 18.7 per cent of the total new office premiums ($36.4 billion) for individual business in the first quarter of 2015.

     In the first quarter of 2015, gross and net premiums of general insurance business recorded a growth of 3.1 per cent to $12.9 billion and 4.4 per cent to $9.1 billion respectively compared with the corresponding period in 2014. Overall underwriting profit however declined from $902 million to $645 million.

     On direct business, gross and net premiums increased by 4.8 per cent to $10.2 billion and 5 per cent to $7.5 billion respectively in the first quarter of 2015 compared with the corresponding period in 2014. The increase was mainly driven by Accident and Health business (comprising Medical business), which recorded a growth in gross premiums from $3.5 billion to $3.8 billion.

     The underwriting profit of direct business dropped to $375 million in the first quarter of 2015 from $717 million in the corresponding period in 2014. The underwriting performance of Ships business showed a turnaround from a profit of $42 million to a loss of $213 million. The underwriting profit of Pecuniary Loss business also decreased from $156 million to $97 million.

     On reinsurance inward business, gross premiums decreased from $2.8 billion to $2.7 billion whilst net premiums maintained at $1.5 billion in the first quarter of 2015 compared with the corresponding period in 2014. The underwriting profit increased from $185 million to $270 million due to improved claims experience.

     A summary of provisional statistics of the Hong Kong insurance business for the first quarter of 2015 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 29, 2015
Issued at HKT 15:00

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