Market Performance of the Hong Kong Insurance Industry for
the first half of 2005
*********************************************************** The Office of the Commissioner of Insurance (OCI) today (August 29) released provisional statistics of the Hong Kong insurance industry for the first half of 2005.
In the first half of 2005, gross and net premiums of general insurance business recorded a growth of 6.6% to HK$13,115 million and 6.5% to HK$9,331 million respectively compared with the corresponding period of 2004.
Overall underwriting profit of general insurance business decreased dramatically from HK$1,279 million to HK$204 million compared with the corresponding period of 2004. Underwriting performance of Ships business deteriorated, turning round a profit of HK$127 million to a loss of HK$494 million. Underwriting result of Property Damage business, however, improved from a profit of HK$371 million to HK$467 million.
Underwriting performance of the two major classes of compulsory insurance business, i.e. Motor Vehicle business and General Liability business including the statutory Employees' Compensation business (EC), both deteriorated. Motor Vehicle business reversed from a profit of HK$213 million to a loss of HK$20.3 million, attributable to an increase in net claims incurred ratio. General Liability business also turned round a profit of HK$111 million to a loss of HK$205 million (with underwriting loss of EC business jumping from HK$32.2 million to HK$297 million), due to a general decrease in premium rates and signs of deterioration in claims experience.
Total revenue premiums of long term in-force business amounted to HK$53,297 million in the first half of 2005, representing an increase of 10.0% over the same period of 2004.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business grew by 11.2% to HK$30,505 million and 13.4% to HK$13,596 million respectively. Contributions of Retirement Scheme business also recorded a modest growth by 1.2% to HK$7,953 million. On the benefit side, total insurance benefits paid to individuals during the said period dropped by 4.7% to HK$15,681 million.
New business statistics for the first half of 2005 showed that new office premiums (excluding Retirement Scheme business) of long term business increased by 4.7% to HK$20,673 million. Individual Life and Annuity (Non-Linked) business increased slightly by 1.0% to HK$10,913 million in terms of new office premiums. New office premiums of Individual Life and Annuity (Linked) business grew by 9.6% to HK$9,585 million.
The OCI also released, for the first time, the statistics on individual business in respect of policies issued to Mainland visitors in the second quarter of 2005. During the second quarter of 2005, office premiums recorded in respect of the new policies issued to Mainland visitors amounted to HK$400 million, representing 3.5% of the total new office premiums for individual business recorded in the second quarter of 2005 (HK$11,516 million).
Provisional statistics in detail can be downloaded from the OCI's website: http://www.info.gov.hk/oci.
the first half of 2005
*********************************************************** The Office of the Commissioner of Insurance (OCI) today (August 29) released provisional statistics of the Hong Kong insurance industry for the first half of 2005.
In the first half of 2005, gross and net premiums of general insurance business recorded a growth of 6.6% to HK$13,115 million and 6.5% to HK$9,331 million respectively compared with the corresponding period of 2004.
Overall underwriting profit of general insurance business decreased dramatically from HK$1,279 million to HK$204 million compared with the corresponding period of 2004. Underwriting performance of Ships business deteriorated, turning round a profit of HK$127 million to a loss of HK$494 million. Underwriting result of Property Damage business, however, improved from a profit of HK$371 million to HK$467 million.
Underwriting performance of the two major classes of compulsory insurance business, i.e. Motor Vehicle business and General Liability business including the statutory Employees' Compensation business (EC), both deteriorated. Motor Vehicle business reversed from a profit of HK$213 million to a loss of HK$20.3 million, attributable to an increase in net claims incurred ratio. General Liability business also turned round a profit of HK$111 million to a loss of HK$205 million (with underwriting loss of EC business jumping from HK$32.2 million to HK$297 million), due to a general decrease in premium rates and signs of deterioration in claims experience.
Total revenue premiums of long term in-force business amounted to HK$53,297 million in the first half of 2005, representing an increase of 10.0% over the same period of 2004.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business grew by 11.2% to HK$30,505 million and 13.4% to HK$13,596 million respectively. Contributions of Retirement Scheme business also recorded a modest growth by 1.2% to HK$7,953 million. On the benefit side, total insurance benefits paid to individuals during the said period dropped by 4.7% to HK$15,681 million.
New business statistics for the first half of 2005 showed that new office premiums (excluding Retirement Scheme business) of long term business increased by 4.7% to HK$20,673 million. Individual Life and Annuity (Non-Linked) business increased slightly by 1.0% to HK$10,913 million in terms of new office premiums. New office premiums of Individual Life and Annuity (Linked) business grew by 9.6% to HK$9,585 million.
The OCI also released, for the first time, the statistics on individual business in respect of policies issued to Mainland visitors in the second quarter of 2005. During the second quarter of 2005, office premiums recorded in respect of the new policies issued to Mainland visitors amounted to HK$400 million, representing 3.5% of the total new office premiums for individual business recorded in the second quarter of 2005 (HK$11,516 million).
Provisional statistics in detail can be downloaded from the OCI's website: http://www.info.gov.hk/oci.
Ends/Monday, August 29, 2005
Issued at HKT 11:39
NNNN