Market performance of Hong Kong insurance industry in 2016
Total gross premiums of the Hong Kong insurance industry in 2016 amounted to $448.8 billion, representing an increase of 22.7 per cent over 2015.
The total amount of revenue premiums of long-term in-force business was $403.2 billion in 2016, increasing by 26.1 per cent over 2015. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 36.2 per cent to $344.9 billion whereas Individual Life and Annuity (Linked) business decreased by 28.9 per cent to $28.6 billion. Contributions of Retirement Scheme business grew by 13.9 per cent to $25.1 billion.
New office premiums (excluding Retirement Scheme business) of long-term business for 2016 increased by 41.3 per cent to $185.5 billion compared with 2015. Individual Life and Annuity (Non-Linked) business increased by 48.7 per cent to $179.1 billion. On the other hand, new office premiums of Individual Life and Annuity (Linked) business decreased by 43.9 per cent to $5.7 billion.
In 2016, gross and net premiums of general insurance business decreased by 0.7 per cent to $45.6 billion and 2 per cent to $31.5 billion respectively compared with 2015. Overall underwriting profit decreased from $1.7 billion to $1.6 billion.
On direct business, gross premiums increased slightly by 0.4 per cent to $35 billion whilst net premiums decreased by 3.4 per cent to $24.8 billion in 2016 compared with 2015. The growth in gross premiums was mainly attributable to both Accident & Health business (comprising Medical business) and Property Damage business. The former recorded a growth in gross premiums from $12.9 billion to $13 billion while the latter recorded a growth in gross premiums from $4 billion to $4.1 billion. Such increase, however, was partly offset by the decrease in gross premiums in General Liability business (comprising Employees' Compensation business) from $9.6 billion to $9.4 billion.
The underwriting profit of direct business decreased to $1.1 billion in 2016 from $1.3 billion in 2015. Whilst the underwriting performance of Ships business turned around from a loss of $198 million to a profit of $269 million, the underwriting performance of General Liability business turned from a profit of $314 million to a loss of $126 million. The underwriting profit of Goods in Transit business and Pecuniary Loss business also decreased from $315 million and $277 million to $204 million and $212 million respectively. In addition, the underwriting loss of Motor Vehicle business widened from $198 million to $262 million.
On reinsurance inward business, gross premiums decreased from $11.1 billion to $10.7 billion whilst net premiums increased from $6.5 billion to $6.7 billion in 2016 compared with 2015. The underwriting profit increased from $444 million to $487 million.
A summary of provisional statistics of the Hong Kong insurance business for 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/Friday, March 24, 2017
Issued at HKT 15:00
Issued at HKT 15:00