Market performance of Hong Kong insurance industry for first half of 2013
************************************************************

     The Office of the Commissioner of Insurance today (August 30) released provisional statistics of the Hong Kong insurance industry for the first half of 2013.

     Total gross premiums of the Hong Kong insurance industry in the first half of 2013 amounted to $143.7 billion, representing an increase of 14.5 per cent over the corresponding period in 2012.

     The total amount of revenue premiums of long term in-force business was $120.9 billion in the first half of 2013, increasing by 14.9 per cent over the same period of 2012.

     Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business increased by 14.6 per cent to $82.8 billion and by 20.6 per cent to $28.2 billion respectively. Contributions of Retirement Scheme business grew slightly by 2.6 per cent to $8.2 billion.

     New office premiums (excluding Retirement Scheme business) of long term business for the first half of 2013 increased by 21.1 per cent to $45.8 billion compared with the same period of 2012. Both Individual Life and Annuity (Non-Linked) and Individual Life and Annuity (Linked) business recorded premium growth, with the former increasing by 18 per cent to $35.1 billion and the latter increasing by 33.4 per cent to $10.5 billion in terms of new office premiums.

     In respect of policies issued to Mainland visitors, new office premiums amounted to $6 billion, representing 13.1 per cent of total new office premiums ($45.7 billion) for individual business in the first half of 2013.

     In the first half of 2013, gross and net premiums of general insurance business recorded a growth of 12.5 per cent to $22.8 billion and 14.1 per cent to $16.2 billion respectively compared with the corresponding period in 2012. However, overall underwriting profit declined from $1.6 billion to $1.5 billion.

     On direct business, gross and net premiums gained 11.1 per cent to $17.3 billion and 12.6 per cent to $13 billion respectively in the first half of 2013 compared with the corresponding period in 2012, mainly driven by General Liability business (comprising Employees' Compensation business) and Accident and Health business (comprising Medical business). The former recorded gross and net premiums of $5 billion and $3.9 billion respectively, while the latter recorded $6.1 billion and $5.2 billion respectively.

     The underwriting profit of direct business increased to $1.2 billion in the first half of 2013 from $1 billion in the corresponding period in 2012. The underwriting profit of Property Damage business and Motor Vehicle business increased from $189 million to $239 million and from $86 million to $109 million respectively. Such increase was partly offset by the decrease in underwriting profit of Goods in Transit business from $133 million to $97 million.

     On reinsurance inward business, gross premiums and net premiums grew from $4.7 billion to $5.5 billion and from $2.7 billion to $3.2 billion in the first half of 2013 compared with the corresponding period in 2012. Nevertheless, the underwriting profit dropped from $572 million to $367 million due to adverse claims experience.

     A summary of provisional statistics of the Hong Kong insurance business for the first half of 2013 is at annex. Further details can be downloaded from the website of the Office of the Commissioner of Insurance: www.oci.gov.hk.

Ends/Friday, August 30, 2013
Issued at HKT 15:00

NNNN