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The Office of the Commissioner of Insurance (OCI) today (September 10) released provisional statistics of the Hong Kong insurance industry for the first half of 2008.
In the first half of 2008, gross and net premiums of general insurance business grew by 10.1% to HK$14.258 billion and 9.6% to HK$10.251 billion respectively compared with the same period in 2007. However, overall underwriting profit lowered from $1.039 billion to $826 million.
On direct business, gross and net premiums increased by 11.0% to $11.487 billion and 13.0% to $8.537 billion respectively in the first half of 2008, driven again by Accident & Health business whose gross and net premiums were $3.835 billion and $3.361 billion respectively, as well as Pecuniary Loss business whose gross and net premiums were $756 million and $402 million respectively.
The underwriting profit of direct business dropped to $306 million from $599 million in the first half of 2008, mainly due to adverse claims experience. Specifically, Motor Vehicle business turned from a profit of $16 million to a loss of $68 million, Property Damage business reported a significant dip in profit from $175 million to $55 million (caused partly by tropical storm Fengshen), whereas the losses incurred by Employees' Compensation business widened from $25 million to $172 million. Nonetheless, performance of Accident & Health business improved markedly from a profit of $148 million to $241 million, of which $142 million was related to Non-Medical business and $99 million to Medical business.
On reinsurance inward business, gross premiums went up by 6.6% to $2.771 billion while net premiums declined by 5.0% to $1.714 billion in the first half of 2008. At the same time, underwriting profit was lifted from $440 million to $520 million, riding on sustained release of claims reserve.
Total revenue premiums of long term in-force business was $91.945 billion in the first half of 2008, showing an increase of 19.7% over the same period in 2007.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business upped by 21.4% to $42.363 billion and by 21.3% to $35.936 billion respectively. Meanwhile, contributions of Retirement Scheme business grew by 11.9% to $12.124 billion. Total insurance benefits paid to individuals rose by 11.3% to $29.643 billion.
New office premiums (excluding Retirement Scheme business) of long term business for the first half of 2008 increased by 25.5% to $41.192 billion compared with the same period in 2007, led by Individual Life and Annuity (Non-Linked) business whose premiums surged by 54.0% to $14.301 billion. Premiums for Individual Life and Annuity (Linked) business saw a relatively modest rise of 14.3% to $26.653 billion.
In respect of new policies issued to Mainland visitors, office premiums amounted to $2.144 billion, representing 5.2% of the total new office premiums ($41.085 billion) for individual business in the first half of 2008.
A summary of provisional statistics of the Hong Kong insurance business from January to June 2008 is at Annex. Further details can be downloaded from the OCI's website at http://www.oci.gov.hk.
Ends/Wednesday, September 10, 2008
Issued at HKT 15:00
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