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The Office of the Commissioner of Insurance (OCI) today (August 30) released provisional statistics of the Hong Kong insurance industry for the first half of 2007.
In the first half of 2007, gross and net premiums for general insurance business recorded a growth of 6.7% to $12.948 billion and 5.9% to $9.355 billion respectively as compared with the corresponding period of 2006. However, the overall underwriting result decreased from a profit of $1.36 billion to $1.039 billion for the period.
On direct business, both gross and net premiums experienced an increase of 4.9% to $10.348 billion and $7.552 billion respectively in the first half of 2007, primarily driven by the strong growth in medical business by $440 million in gross premiums and $379 million in net premiums. The underwriting profit of direct business nevertheless dropped from $829 million to $599 million. This was essentially attributable to the deterioration in underwriting performances of motor vehicle business, being one of the major classes of compulsory insurance business, which recorded a fall in profit from $135 million to $16 million due to a general decline in premium rates; Ships business which suffered an increase in loss from $10 million to $97 million due to adverse claims experience; as well as property damage business which recorded a decline in profit from $223 million to $175 million caused by increased commissions. As regards the other major class of compulsory insurance business, i.e. employees¡¦ compensation business, its underwriting result turned from a profit of $3 million to a loss of $25 million.
On reinsurance inward business, gross and net premiums grew by 14.8% to $2.6 billion and 10.3% to $1.803 billion respectively, essentially due to the increase in property damage reinsurance written in the period. The underwriting profit reduced from $530 million to $440 million due to deterioration in claims experience recorded.
Total revenue premiums of long term in-force business amounted to $76.827 billion in the first half of this year, representing an increase of 17.6% over the same period of 2006.
Revenue premiums of individual life and annuity (non-Linked) business and individual life and annuity (linked) business grew by 6.7% to $34.904 billion and 33.8% to $29.628 billion respectively. Contributions of retirement scheme business also recorded a growth by 18.5% to $10.836 billion. On the benefit side, total insurance benefits paid to individuals during the said period increased by 32.9% to $26.644 billion.
New business statistics for the first half of 2007 showed that new office premiums (excluding retirement scheme business) of long term business increased by 22.1% to $32.819 billion, compared with the same period of 2006. Individual life and annuity (non-Linked) business decreased by 9.2% to $9.289 billion in terms of new office premiums. New office premiums of individual life and annuity (linked) business grew by 41.5% to $23.311 billion.
In respect of new policies issued to Mainland visitors, office premiums amounted to $1.78 billion, representing 5.4% of the total new office premiums ($32.724 billion) for individual business in the first half of 2007.
Summary of provisional statistics of the Hong Kong insurance business from January to June, 2007, is attached as an annex. Provisional statistics in detail can be downloaded from the OCI¡¦s website: http://www.oci.gov.hk.
Ends/Thursday, August 30, 2007
Issued at HKT 15:00
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