Market performance of Hong Kong insurance industry for first quarter of 2017
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Total gross premiums of the Hong Kong insurance industry in the first quarter of 2017 amounted to $122 billion, representing an increase of 20.7 per cent over the corresponding period in 2016.
The total amount of revenue premiums of long term in-force business was $108 billion in the first quarter of 2017, increasing by 22.8 per cent over the same period of 2016. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 25.1 per cent to $92.4 billion whereas Individual Life and Annuity (Linked) business decreased by 3.5 per cent to $7 billion. Contributions of Retirement Scheme business grew by 32.2 per cent to $7.1 billion.
New office premiums (excluding Retirement Scheme business) of long-term business for the first quarter of 2017 increased by 13.4 per cent to $43.8 billion compared with the same period of 2016. Individual Life and Annuity (Non-Linked) business increased by 11.2 per cent to $41.4 billion. Moreover, new office premiums of Individual Life and Annuity (Linked) business increased by 74.4 per cent to $2.2 billion.
In the first quarter of 2017, gross and net premiums of general insurance business recorded a growth of 6.6 per cent to $13.9 billion and 7 per cent to $9.5 billion respectively compared with the corresponding period in 2016. Overall underwriting profit decreased from $574 million to $383 million.
On direct business, gross and net premiums increased by 4.6 per cent to $11.1 billion and 4.2 per cent to $7.7 billion respectively in the first quarter of 2017 compared with the corresponding period in 2016, mainly driven by Accident & Health business (comprising Medical business) and Pecuniary Loss business. The former recorded a growth in gross premiums from $4.2 billion to $4.6 billion while the latter recorded a growth in gross premiums from $354 million to $432 million.
The underwriting profit of direct business decreased to $398 million in the first quarter of 2017 from $549 million in the corresponding period in 2016. It was mainly attributable to Ships business whose underwriting performance turned from a profit of $97 million to a loss of $1 million and Property Damage business whose underwriting profit decreased from $190 million to $118 million.
On reinsurance inward business, gross and net premiums increased from $2.4 billion and $1.5 billion to $2.8 billion and $1.8 billion respectively in the first quarter of 2017 compared with the corresponding period in 2016. The underwriting performance, however, turned from a profit of $25 million to a loss of $15 million.
A summary of provisional statistics of the Hong Kong insurance business for the first quarter of 2017 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, May 31, 2017
Issued at HKT 14:36
Issued at HKT 14:36
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