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Market performance of Hong Kong insurance industry for first three quarters of 2016
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     The Office of the Commissioner of Insurance today (November 30) released provisional statistics of the Hong Kong insurance industry for the first three quarters of 2016.

     Total gross premiums of the Hong Kong insurance industry in the first three quarters of 2016 amounted to $327.3 billion, representing an increase of 20 per cent over the corresponding period in 2015.

     The total amount of revenue premiums of long term in-force business was $291.5 billion in the first three quarters of 2016, increasing by 22.9 per cent over the same period of 2015. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 33.2 per cent to $247.8 billion whereas Individual Life and Annuity (Linked) business decreased by 33.6 per cent to $20.9 billion. Contributions of Retirement Scheme business grew by 18 per cent to $19.1 billion.

     New office premiums (excluding Retirement Scheme business) of long term business for the first three quarters of 2016 increased by 35.8 per cent to $132.6 billion compared with the same period of 2015. Individual Life and Annuity (Non-Linked) business increased by 45.6 per cent to $128.6 billion. On the other hand, new office premiums of Individual Life and Annuity (Linked) business decreased by 60 per cent to $3.5 billion.

     In respect of policies issued to Mainland visitors, new office premiums amounted to $48.9 billion, representing 37 per cent of the total new office premiums ($132.3 billion) for individual business in the first three quarters of 2016.

     In the first three quarters of 2016, gross premiums of general insurance business increased by 0.8 per cent to $35.7 billion whilst net premiums decreased by 0.5 per cent to $24.7 billion compared with the corresponding period in 2015. Overall underwriting profit decreased from $1.5 billion to $1.3 billion.

     On direct business, gross premiums recorded a growth of 2.8 per cent to $27.9 billion whilst net premiums maintained at $19.9 billion in the first three quarters of 2016 compared with the corresponding period in 2015. The growth in gross premiums was mainly attributable to both Accident and Health business (comprising Medical business) and Property Damage business. The former recorded a growth in gross premiums from $9.7 billion to $10.6 billion while the latter recorded a growth in gross premiums from $3.2 billion to $3.3 billion respectively.

     The underwriting profit of direct business decreased to $943 million in the first three quarters of 2016 from $1.1 billion in the corresponding period in 2015. Although the underwriting performance of Ships business showed a turnaround from a loss of $103 million to a profit of $195 million, such increase was offset by the fall in the underwriting profit of Goods in Transit business, General Liability business and Pecuniary Loss business from $224 million, $270 million and $254 million to $153 million, less than $1 million and $189 million respectively.

     On reinsurance inward business, gross premiums decreased from $8.4 billion to $7.9 billion and net premiums decreased from $4.9 billion to $4.8 billion in the first three quarters of 2016 compared with the corresponding period in 2015. The underwriting profit also dropped from $412 million to $347 million.

     A summary of provisional statistics of the Hong Kong insurance business for the first three quarters of 2016 is in the annex. Further details can be downloaded from the website of the Office of the Commissioner of Insurance: www.oci.gov.hk.
 
Ends/Wednesday, November 30, 2016
Issued at HKT 15:00
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