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The Office of the Commissioner of Insurance (OCI) today (March 14) released the provisional statistics of the Hong Kong insurance industry for 2007.
In 2007, gross and net premiums of general insurance business recorded a modest growth of 4.8% to HK$24,057 million and 5.0% to HK$17,008 million respectively compared with 2006. Overall underwriting profit enhanced from HK$2,067 million to HK$2,301 million. Property Damage business, registering a profit of HK$764 million, remained the largest contributor to this outcome.
On direct business, gross and net premiums increased by 5.6% to HK$19,189 million and by 7.5% to HK$14,033 million respectively in 2007, largely attributable to Accident & Health business (comprising Medical business) whose gross premiums surged by 15.9% to HK$6,002 million and whose net premiums by 15.5% to HK$5,185 million. Despite an expanding fleet of insured vehicles, gross premiums of Motor Vehicle business contracted by 2.1% to HK$2,489 million. On the other hand, Statutory Ships business benefited from a wider scope of vessels prescribed under the Merchant Shipping (Local Vessels) Ordinance effective from July 2, 2007 and saw a rise in gross premiums by 45.5% to HK$40 million.
Direct business managed to sustain an underwriting profit of HK$1,161 million in 2007 compared with HK$1,116 million in 2006 due to Accident & Health business whose underwriting profit improved from HK$128 million to HK$271 million and Non-Statutory Ships business whose underwriting loss lowered from HK$238 million to HK$137 million. Nonetheless, soft market conditions and adverse claims experience caused a significant drop of underwriting profit for Motor Vehicle business from HK$158 million to HK$18 million. As regards Employees¡¦ Compensation business, underwriting loss widened from $85 million to HK$114 million.
On reinsurance inward business, gross premiums edged up by 1.7% to HK$4,868 million while net premiums shrank by 5.2% to HK$2,975 million in 2007. Underwriting profit improved from HK$951 million to HK$1,139 million, albeit mainly due to release of claims reserve.
Total revenue premiums of long term in-force business amounted to HK$176,018 million in 2007, representing an increase of 30.7% over 2006.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business grew by 7.9% to HK$75,148 million and by 72.7% to HK$74,340 million respectively. Meanwhile, contributions to Retirement Scheme business also recorded a growth by 22.3% to HK$23,835 million. Total insurance benefits paid to individuals rose by 33.4% to HK$59,659 million.
Statistics for 2007 showed that new office premiums (excluding Retirement Scheme business) of long term business burgeoned by 51.2% to HK$80,777 million compared with 2006. Although Individual Life and Annuity (Non-Linked) business dipped by 2.9% to HK$20,314 million in terms of new office premiums, Individual Life and Annuity (Linked) business leaped by 86.9% to HK$60,040 million.
In respect of new policies issued to Mainland visitors, office premiums came to HK$5,248 million, representing 6.5% of the total new office premiums (HK$80,615 million) for individual business in 2007.
A summary of provisional statistics of the Hong Kong insurance business for 2007 is at Annex. Further details can be downloaded from the OCI website (http://www.oci.gov.hk).
Ends/Friday, March 14, 2008
Issued at HKT 15:00
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