**********************************************************
The Office of the Commissioner of Insurance (OCI) today (March 16) released the provisional statistics of the Hong Kong insurance industry for 2006.
In 2006, gross and net premiums of general insurance business recorded a growth of 3.2% to HK$23.274 billion and 6.0% to HK$16.587 billion respectively compared with 2005.
The overall underwriting profit of general insurance business increased from HK$2.497 billion to HK$2.879 billion. More notable were the improvements in the underwriting performance of Ships business turning from a loss of HK$156 million to a profit of HK$41 million, and that of Pecuniary Loss business increasing from a profit of HK$280 million to HK$455 million. Property Damage business remained the largest contributor to the overall underwriting profit, albeit reducing from a profit of HK$995 million to HK$972 million.
On direct business, gross premiums increased by 4.6% to HK$18.337 billion and net premiums increased by 8.1% to HK$13.291 billion in 2006. Accident & Health business was the main driver in premium growth, registering an increase in gross premiums of HK$758 million to HK$5.198 billion. The underwriting result of direct business increased from HK$1.441 billion in 2005 to HK$1.603 billion in 2006. As regards the two major classes of compulsory insurance business, i.e. Motor Vehicle business and Employees' Compensation business (EC), the underwriting result of Motor Vehicle business reduced from a profit of HK$384 million to HK$214 million attributable to the deterioration in claims experience whereas that of the EC business turnaround from a loss of HK$136 million to a profit HK$0.8 million due to the significant release of over-provision for past claims.
On reinsurance inward business, gross and net premiums decreased by 1.4% to HK$4.938 billion and 1.7% to HK$3.296 billion respectively in 2006. The underwriting result continued to be profitable, with an increase in profit from HK$1.057 billion to HK$1.276 billion due to improvement in claims experience.
Total revenue premiums of long term in-force business amounted to HK$134.685 billion in 2006, representing an increase of 15.1% over 2005.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business grew by 4.8% to HK$69.641 billion and 42.7% to HK$43.042 billion respectively. Contributions of Retirement Scheme business also recorded a growth by 8.2% to HK$19.483 billion. On the benefit side, total insurance benefits paid to individuals during the said period increased by 30.0% to HK$44.716 billion.
New business statistics for 2006 showed that new office premiums (excluding Retirement Scheme business) of long term business increased by 16.4% to HK$53.418 billion compared with 2005. Individual Life and Annuity (Non-Linked) business decreased by 13.8% to HK$20.928 billion in terms of new office premiums. New office premiums of Individual Life and Annuity (Linked) business grew by 51.2% to HK$32.128 billion.
In respect of new policies issued to Mainland visitors, office premiums amounted to HK$2.803 billion, representing 5.3% of the total new office premiums (HK$ 53.259 billion) for individual business in 2006.
Summary of provision statistics of the Hong Kong insurance business for 2006 is attached as an annex. Provisional statistics in detail can be downloaded from the OCI's website: http://www.oci.gov.hk.
Ends/Friday, March 16, 2007
Issued at HKT 15:01
NNNN
