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The Office of the Commissioner of Insurance (OCI) today (December 2) released provisional statistics of the Hong Kong insurance industry for the first three quarters of 2011.
Total gross premiums of the Hong Kong insurance industry in the first three quarters of 2011 amounted to $172.8 billion, representing an increase of 12.6 per cent over the corresponding period in 2010.
In the first three quarters of 2011, gross and net premiums of general insurance business rose by 12.5 per cent to $27.4 billion and 10.1 per cent to $19.0 billion respectively compared with the corresponding period in 2010. Overall underwriting profit also increased from $1.7 billion to $2.1 billion.
On direct business, gross and net premiums gained 7.9 per cent to $20.5 billion and 7.3 per cent to $15.1 billion respectively in the first three quarters of 2011 compared with the corresponding period in 2010, propelled again by Accident and Health business (comprising Medical business), the gross and net premiums of which were $7.3 billion and $6.1 billion respectively. General Liability business (comprising Employees' Compensation business) and Motor Vehicle business also contributed to the premium growth. The former recorded gross and net premiums of $5.3 billion and $3.8 billion respectively, while the latter recorded $2.5 billion and $2.0 billion respectively. However, as a result of the slowdown in property transactions, gross and net premiums of Pecuniary Loss business (comprising Mortgage Guarantee business) dropped by 20.6 per cent to $1,043 million and 31.9 per cent to $585 million respectively.
The underwriting profit of direct business reduced to $1.3 billion in the first three quarters of 2011 from $1.4 billion in the corresponding period of 2010. Poor claims experience led to a significant fall in the underwriting profit of Motor Vehicle business, Accident and Health business and General Liability business from $125 million to $2 million, from $388 million to $292 million and from $137 million to $63 million respectively, offsetting the increase in underwriting profit of Property Damage business from $211 million to $370 million.
On reinsurance inward business, gross and net premiums grew from $5.4 billion to $6.9 billion and from $3.1 billion to $3.8 billion respectively in the first three quarters of 2011 compared with the corresponding period in 2010, primarily attributable to the premium increase in Property Damage business. The strong premium growth also drove the underwriting profit to increase from $288 million to $752 million.
Total revenue premiums of long-term in-force business were $145.4 billion in the first three quarters of 2011, increasing by 12.6 per cent over the same period of 2010.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business increased by 21.0 per cent to $96.2 billion and by 20.2 per cent to $37.0 billion respectively. Contributions of Retirement Scheme business plunged by 40.8 per cent to $10.0 billion.
New office premiums (excluding Retirement Scheme business) of long-term business for the first three quarters of 2011 increased significantly by 33.4 per cent to $56.6 billion compared with the same period of 2010. Both Individual Life and Annuity (Non-Linked) and Individual Life and Annuity (Linked) business recorded significant premium growth, with the former increased by 33.6 per cent to $39.4 billion and the latter increased by 33.3 per cent to $16.9 billion in terms of new office premiums.
In respect of new policies issued to Mainland visitors, office premiums amounted to $4.6 billion, representing 8.2 per cent of the total new office premiums ($56.3 billion) for individual business in the first three quarters of 2011.
A summary of provisional statistics of the Hong Kong insurance business for the first three quarters of 2011 is at the Annex. Further details can be downloaded from the OCI's website at www.oci.gov.hk.
Ends/Friday, December 2, 2011
Issued at HKT 15:07
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