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The Office of the Commissioner of Insurance (OCI) today (November 28) released provisional statistics of the Hong Kong insurance industry for the first three quarters of 2008.
In the first three quarters of 2008, gross and net premiums of general insurance business recorded a growth of 11.3% to HK$20.934 billion and 11.1% to HK$14.974 billion respectively compared with the same period in 2007. However, underwriting profit decreased from $1.783 billion to $814 million.
On direct business, gross and net premiums increased by 12.3% to $16.932 billion and 14.6% to $12.557 billion respectively in the first three quarters of 2008, propelled by Accident & Health business whose gross and net premiums were $5.591 billion and $4.910 billion respectively, as well as Pecuniary Loss business whose gross and net premiums were $1.156 billion and $652 million respectively.
The underwriting profit of direct business dropped from $893 million to $130 million in the first three quarters of 2008 due to adverse claims experience. Specifically, Motor Vehicle business turned from a profit of $13 million to a loss of $223 million, Property Damage business reported a dip in profit from $247 million to $24 million and the loss incurred by Employees¡¦ Compensation business widened from $87 million to $375 million. On the other hand, Accident & Health business sustained a strong performance with its profit expanding from $255 million to $342 million, of which $124 million was related to Medical business and $218 million to Non-Medical business.
On reinsurance inward business, gross premiums went up by 7.2% to $4.003 billion while net premiums declined by 4.0% to $2.417 billion in the first three quarters of 2008. At the same time, underwriting profit moderated from $890 million to $684 million due to exceptional losses recorded in Goods in Transit business.
Total revenue premiums of long term in-force business was $131.672 billion in the first three quarters of 2008, showing an increase of 7.1% over the same period in 2007.
The revenue premiums of Individual Life and Annuity (Non-Linked) business gained 16.2% to $63.129 billion whereas Individual Life and Annuity (Linked) business decreased by 3.2% to $48.389 billion. Contributions of Retirement Scheme business grew by 8.0% to $17.887 billion and total insurance benefits paid to individuals rose by 7.0% to $44.834 billion.
New office premiums (excluding Retirement Scheme business) of long term business for the first three quarters of 2008 lost 0.4% to $54.214 billion compared with the same period in 2007, mainly caused by Individual Life and Annuity (Linked) business whose premiums contracted by 15.5% to $33.602 billion. This notwithstanding, new office premiums for Individual Life and Annuity (Non-Linked) business was boosted by 41.4% to $20.238 billion against a comparatively low base last year.
In respect of new policies issued to Mainland visitors, office premiums amounted to $2.771 billion, representing 5.1% of the total new office premiums ($54.034 billion) for individual business in the first three quarters of 2008.
A summary of provisional statistics of the Hong Kong insurance business from January to September 2008 is at Annex. Further details can be downloaded from the OCI's website at www.oci.gov.hk
Ends/Friday, November 28, 2008
Issued at HKT 15:00
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