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Market performance of Hong Kong insurance industry in 2012
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     The Office of the Commissioner of Insurance today (March 15) released provisional statistics of the Hong Kong insurance industry for 2012.

     Total gross premiums of the Hong Kong insurance industry in 2012 amounted to $255.2 billion, representing an increase of 13.0 per cent over 2011.

     The total amount of revenue premiums of long-term in-force business was $215.9 billion in 2012, increasing by 13.0 per cent over 2011.

     Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business increased by 16.1 per cent to $146.4 billion and by 2.8 per cent to $49.9 billion respectively. Contributions of Retirement Scheme business grew by 21.4 per cent to $16.7 billion.

     New office premiums (excluding Retirement Scheme business) of long-term business for 2012 increased by 10.4 per cent to $77.8 billion compared with 2011. In terms of new office premiums, Individual Life and Annuity (Non-Linked) business increased by 22.1 per cent to $60.3 billion. On the other hand, new office premiums of Individual Life and Annuity (Linked) business dropped by 17.7 per cent to $17.1 billion.

     In respect of policies issued to Mainland visitors, new office premiums amounted to $9.9 billion, representing 12.8 per cent of the total new office premiums ($77.6 billion) for individual business in 2012.

     In 2012, gross and net premiums of general insurance business recorded a growth of 13.2 per cent to $39.3 billion and 13.5 per cent to $27 billion respectively compared with 2011. Overall underwriting profit however declined from $3 billion in 2011 to $2.2 billion in 2012.

     On direct business, gross and net premiums increased by 13.1 per cent to $29 billion and 13.6 per cent to $21.4 billion respectively in 2012 compared with 2011, mainly driven by General Liability business (comprising Employees' Compensation business), the gross and net premiums of which were $8.2 billion and $6.1 billion respectively. Accident & Health business (comprising Medical business) and Pecuniary Loss business also contributed to the premium growth. The former recorded gross and net premiums of $9.9 billion and $8.2 billion respectively, while the latter recorded $1.6 billion and $912 million respectively.

     The underwriting profit of direct business decreased to $1.6 billion in 2012 from $1.9 billion in 2011. The underwriting profit of Pecuniary Loss business recorded a fall from $744 million to $408 million and the underwriting performance of General Liability business turned around from a profit of $96 million to a loss of $132 million. Both of these offset the increases in underwriting profit of Accident & Health business (from $516 million to $675 million) and Motor Vehicle business (from $42 million to $105 million).

     On reinsurance inward business, gross and net premiums increased from $9.1 billion to $10.3 billion and from $5 billion to $5.7 billion respectively in 2012 compared with 2011. Nevertheless, the underwriting profit dropped from $1.1 billion to $590 million mainly due to adverse claims experience.

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

Ends/Friday, March 15, 2013
Issued at HKT 15:00

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