Market performance of Hong Kong insurance industry for first three quarters of 2012
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     The Office of the Commissioner of Insurance today (December 3) released provisional statistics of the Hong Kong insurance industry for the first three quarters of 2012.

     Total gross premiums of the Hong Kong insurance industry in the first three quarters of 2012 amounted to $190.1 billion, representing an increase of 10.0 per cent over the corresponding period in 2011.

     In the first three quarters of 2012, gross and net premiums of general insurance business recorded a growth of 11.3 per cent to $30.5 billion and 11.4 per cent to $21.1 billion respectively compared with the corresponding period in 2011. Overall underwriting profit was maintained at $2.1 billion, which is on a par with that in 2011.

     On direct business, gross and net premiums increased by 11.0 per cent to $22.8 billion and 11.6 per cent to $16.9 billion respectively in the first three quarters of 2012 compared with the corresponding period in 2011, mainly driven by General Liability business (comprising Employees' Compensation business), the gross and net premiums of which were $6.2 billion and $4.7 billion respectively. Accident & Health business (comprising Medical business) and Property Damage business also contributed to the premium growth. The former recorded gross and net premiums of $8.0 billion and $6.7 billion respectively, while the latter recorded $3.0 billion and $1.5 billion respectively.

     The underwriting profit of direct business increased to $1.4 billion in the first three quarters of 2012 from $1.3 billion in the corresponding period in 2011. Benefiting from a growth in business, the underwriting profit of Accident & Health business rose from $292 million to $438 million. The underwriting profit of General Liability business and Motor Vehicle business also grew from $63 million to $179 million and from $2 million to $98 million respectively, both attributable to better claims experience. However, these increases were offset by a fall in underwriting profit of Pecuniary Loss business and Property Damage business from $572 million to $360 million and from $370 million to $177 million respectively.

     On reinsurance inward business, gross and net premiums increased from $6.9 billion to $7.7 billion and from $3.8 billion to $4.2 billion respectively in the first three quarters of 2012 compared with the corresponding period in 2011. Nevertheless, the underwriting profit dropped from $752 million to $693 million due to adverse claims experience.

     The total amount of revenue premiums of long-term in-force business was $159.6 billion in the first three quarters of 2012, increasing by 9.8 per cent over the same period in 2011.

     Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 13.3 per cent to $108.9 billion whereas Individual Life and Annuity (Linked) business decreased by 1.9 per cent to $36.3 billion. Contributions of Retirement Scheme business grew by 19.7 per cent to $12.0 billion.

     New office premiums (excluding Retirement Scheme business) of long-term business for the first three quarters of 2012 increased slightly by 1.3 per cent to $57.3 billion compared with the same period in 2011. In terms of new office premiums, Individual Life and Annuity (Non-Linked) business increased by 14.5 per cent to $45.1 billion. On the other hand, new office premiums of Individual Life and Annuity (Linked) business plunged by 29.7 per cent to $11.9 billion.

     In respect of policies issued to Mainland visitors, new office premiums amounted to $7.0 billion, representing 12.3 per cent of the total new office premiums ($57.1 billion) for individual business in the first three quarters of 2012.

     A summary of provisional statistics of the Hong Kong insurance business for the first three quarters of 2012 is at annex. Further details can be downloaded from the website of the Office of the Commissioner of Insurance: www.oci.gov.hk.

Ends/Monday, December 3, 2012
Issued at HKT 15:00

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