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The Office of the Commissioner of Insurance (OCI) today (November 28) released provisional statistics of the Hong Kong insurance industry for the first three quarters of 2005.
In the first three quarters of 2005, gross and net premiums of general insurance business recorded a growth of 4.6% to HK$18,819 million and 5.9% to HK$13,508 million respectively, compared with the corresponding period of last year.
Overall underwriting profit of general insurance business decreased substantially from HK$1,859 million to HK$637 million compared with the corresponding period of 2004. Ships business recorded a significant deterioration in its underwriting performance, turning round a profit of HK$120 million to a loss of HK$520 million. Underwriting result of Property Damage business, however, improved from a profit of HK$596 million to HK$704 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$266 million to a loss of HK$1.8 million, attributable to an increase in net claims incurred ratio. General Liability business also turned round from a profit of HK$202 million to a loss of HK$189 million (with EC business deteriorating significantly from a loss of HK$37.8 million to HK$328 million) due to a decline in premium rates and deterioration in claims experience.
Total revenue premiums of long term in-force business reached HK$82,374 million in the first three quarters of 2005, representing an increase of 13.9% 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 14.6% to HK$47,185 million and 21.4% to HK$21,270 million respectively. Contributions of Retirement Scheme business also recorded a modest growth by 1.9% to HK$12,087 million. On the benefit side, total insurance benefits paid to individuals during the said period increased by 6.2% to HK$25,078 million.
Provisional statistics for the first three quarters of 2005 showed that new office premiums (excluding Retirement Scheme business) of long term business increased by 15.4% to HK$31,785 million. Individual Life and Annuity (Non-Linked) business increased by 13.0% to HK$16,662 million in terms of new office premiums. New office premiums of Individual Life and Annuity (Linked) business grew by 18.6% to HK$14,866 million.
During the second and third quarters of 2005, office premiums recorded in respect of new policies issued to Mainland visitors amounted to HK$1,009 million, representing 4.5% of the total new office premiums (HK$22,590 million) for individual business recorded in these two quarters.
Provisional statistics in detail can be downloaded from the OCI's website (http://www.info.gov.hk/oci).
Ends/Monday, November 28, 2005
Issued at HKT 14:31
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