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The Office of the Commissioner of Insurance (OCI) today (March 12) released the provisional statistics of the Hong Kong insurance industry for 2008.
In 2008, gross and net premiums of general insurance business recorded a growth of 11.3% to HK$27.019 billion and 12.3% to HK$19.158 billion respectively compared with 2007. Nonetheless, underwriting profit lowered from $2.398 billion to $1.510 billion, with Accident & Health business registering a profit of $508 million being the largest contributor, followed by Property Damage business chalking up a profit of $490 million.
On direct business, gross and net premiums increased by 11.6% to $21.582 billion and by 13.9% to $16.031 billion respectively in 2008, benefiting from favourable performance of Accident & Health business whose gross and net premiums were $6.936 billion and $6.024 billion respectively, as well as Pecuniary Loss business whose gross and net premiums were $1.456 billion and $845 million respectively.
The underwriting profit of direct business receded sharply from $1.223 billion to $519 million in 2008 due to adverse claims experience. Specifically, Motor Vehicle business reversed from a profit of $11 million to a loss of $259 million, Property Damage business reported a substantial dip in profit from $413 million to $127 million, and the loss recorded in Employees' Compensation business widened from $164 million to $498 million. On the other hand, Accident & Health business performed strongly with its profit expanding from $257 million to $497 million, of which $219 million was related to Medical business and $278 million to Non-Medical business.
On reinsurance inward business, gross and net premiums went up by 10.4% to $5.436 billion and 4.8% to $3.127 billion respectively in 2008. Underwriting profit moderated from $1.175 billion to $990 million, with exceptional losses seen in Goods in Transit business.
Total revenue premiums of long term in-force business was HK$166.050 billion in 2008, giving up 5.7% compared with the previous year.
The revenue premiums of Individual Life and Annuity (Non-Linked) business gained 9.0% to $81.884 billion whereas Individual Life and Annuity (Linked) business shrank by 24.0% to $56.524 billion. Contributions of Retirement Scheme business grew by 3.7% to $24.721 billion. Total insurance benefits paid to individuals rose by 5.7% to $63.080 billion.
New office premiums (excluding Retirement Scheme business) of long term business for 2008 dropped 24.9% to $60.635 billion compared with 2007, mainly caused by Individual Life and Annuity (Linked) business whose premiums contracted markedly by 39.9% to $36.107 billion. This notwithstanding, new office premiums in respect of Individual Life and Annuity (Non-Linked) business was boosted by 18.4% to $24.054 billion.
In respect of new policies issued to Mainland visitors, office premiums amounted to $3.263 billion, representing 5.4% of the total new office premiums ($60.417 billion) for individual business in 2008.
A summary of provisional statistics of the Hong Kong insurance business for 2008 is at Annex. Further details can be downloaded from the OCI's website (http://www.oci.gov.hk).
Ends/Thursday, March 12, 2009
Issued at HKT 15:00
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