Go to main content
 
Market performance of Hong Kong insurance industry for first half of 2016
*************************************************************************
     The Office of the Commissioner of Insurance today (August 31) released provisional statistics of the Hong Kong insurance industry for the first half of 2016.
 
     Total gross premiums of the Hong Kong insurance industry in the first half of 2016 amounted to $207.5 billion, representing an increase of 12.2 per cent over the corresponding period in 2015.
  
     The total amount of revenue premiums of long-term in-force business was $183.5 billion in the first half of 2016, increasing by 14 per cent over the same period of 2015. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 24.7 per cent to $156.1 billion whereas Individual Life and Annuity (Linked) business decreased by 39.1 per cent to $13.9 billion. Contributions of Retirement Scheme business grew by 3.2 per cent to $10.9 billion.
 
     New office premiums (excluding Retirement Scheme business) of long-term business for the first half of 2016 increased by 18.9 per cent to $81.7 billion compared with the same period of 2015. Individual Life and Annuity (Non-Linked) business increased by 30.1 per cent to $79.3 billion. On the other hand, new office premiums of Individual Life and Annuity (Linked) business decreased by 72 per cent to $2.1 billion.
 
     In respect of policies issued to Mainland visitors, new office premiums amounted to $30.1 billion, representing 36.9 per cent of the total new office premiums ($81.5 billion) for individual business in the first half of 2016.
 
     In the first half of 2016, gross premiums of general insurance business recorded a growth of 0.6 per cent to $24 billion whilst net premiums recorded a decline of 1.9 per cent to $16.6 billion compared with the corresponding period in 2015. Overall underwriting profit increased from $703 million to $1.1 billion.
 
     On direct business, gross premiums increased by 1.6 per cent to $18.9 billion whilst net premiums decreased by 2 per cent to $13.5 billion in the first half of 2016 compared with the corresponding period in 2015. The increase in gross premiums was mainly driven by Accident & Health business (comprising Medical business) and Ships business. The former recorded a growth in gross premiums from $6.8 billion to $7.1 billion while the latter recorded a growth in gross premiums from $1.5 billion to $1.6 billion.
 
     The underwriting profit of direct business increased to $774 million in the first half of 2016 from $561 million in the corresponding period in 2015. The underwriting performance of Ships business showed a turnaround from a loss of $175 million to a profit of $159 million, offsetting the fall in the underwriting profit of General Liability business (comprising Employees' Compensation business) from $154 million to $70 million. 
 
     On reinsurance inward business, gross and net premiums decreased from $5.2 billion to $5.1 billion and from $3.2 billion to $3.1 billion respectively in the first half of 2016 compared with the corresponding period in 2015. The underwriting profit increased from $142 million to $301 million due to improved claims experience.
 
     A summary of provisional statistics of the Hong Kong insurance business for the first half of 2016 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/Wednesday, August 31, 2016
Issued at HKT 15:00
NNNN
Today's Press Releases  

Attachment