***********************************************************
The Office of the Commissioner of Insurance (OCI) today (May 29) released provisional statistics of the Hong Kong insurance industry for the first quarter of 2008.
In the first quarter of 2008, gross and net premiums of the general insurance business recorded a growth of 12.5% to HK$7,640 million and 11.7% to HK$5,478 million respectively compared with the same period in 2007. Overall underwriting profit also surged from HK$441 million to HK$638 million. Property Damage business remained the largest contributor to this outcome with a profit of HK$151 million, closely followed by Accident & Health business with HK$136 million.
On direct business, gross and net premiums increased by 12.5% to HK$6,244 million and by 14.0% to HK$4,588 million respectively in the first quarter of 2008, mainly attributable to Accident & Health business (comprising Medical business) whose gross and net premiums were HK$2,103 million and HK$1,841 million respectively, as well as Pecuniary Loss business whose gross and net premiums were HK$385 million and HK$196 million respectively.
The underwriting profit of direct business dipped slightly to HK$261 million from HK$274 million in the first quarter of 2008 due to Employees' Compensation business that reverted from a profit of HK$3 million to a loss of HK$83 million and Motor Vehicle business that suffered a significant drop in profit from HK$24 million to HK$2 million. Accident & Health business, nonetheless, saw profit lift from HK$72 million to HK$124 million, of which HK$43 million was related to Medical business.
On reinsurance inward business, gross premiums grew by 12.3% to HK$1,396 million while net premiums edged up only by 1.1% to HK$890 million in the first quarter of 2008. Underwriting profit improved sharply from HK$167 million to HK$377 million, albeit largely resulting from the release of claims reserve.
Total revenue premiums of long term in-force business amounted to HK$47,007 million in the first quarter of 2008, representing an increase of 23.2% over the same period in 2007.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business rose by 19.9% to HK$22,118 million and by 33.6% to HK$17,706 million respectively. Meanwhile, contributions of Retirement Scheme business grew by 12.1% to HK$6,360 million. Total insurance benefits paid to individuals also rose by 20.6% to HK$14,722 million.
New office premiums (excluding Retirement Scheme business) of long term business for the first quarter of 2008 increased by 33.4% to HK$21,633 million compared with the same period in 2007, split in a more balanced manner between Individual Life and Annuity (Non-Linked) that took off by 37.3% to HK$8,212 million and Individual Life and Annuity (Linked) business by 31.5% to HK$13,308 million.
In respect of new policies issued to Mainland visitors, office premiums amounted to HK$1,088 million, representing 5.0% of the total new office premiums (HK$21,584 million) for individual business in the first quarter of 2008.
A summary of provisional statistics of the Hong Kong insurance business from January to March 2008 is at Annex. Further details can be downloaded from the OCI website at (www.oci.gov.hk).
Ends/Thursday, May 29, 2008
Issued at HKT 15:01
NNNN