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The Office of the Commissioner of Insurance (OCI) today (May 31) released provisional statistics of the Hong Kong insurance industry for the first quarter of 2012.
Total gross premiums of the Hong Kong insurance industry in the first quarter of 2012 amounted to $62.8 billion, representing an increase of 11.7 per cent over the corresponding period in 2011.
In the first quarter of 2012, gross and net premiums of general insurance business recorded a growth of 6.4 per cent to $10.9 billion and 8.6 per cent to $7.6 billion respectively compared with the corresponding period in 2011. Overall underwriting profit also recorded an increase from $482 million to $853 million.
On direct business, gross and net premiums gained 10.5 per cent to $8.4 billion and 11.1 per cent to $6.3 billion respectively in the first quarter of 2012 compared with the corresponding period in 2011, mainly driven by General Liability business (comprising Employees' Compensation business) and Accident & Health business (comprising Medical business). The former recorded gross and net premiums of $2.2 billion and $1.6 billion respectively, while the latter recorded $3.2 billion and $2.7 billion respectively. However, owing to the slowdown in property transactions, gross and net premiums of Pecuniary Loss business (comprising Mortgage Guarantee business) dropped by 14.7 per cent to $303 million and 39.5 per cent to $126 million respectively.
The underwriting profit of direct business increased to $634 million in the first quarter of 2012 from $370 million in the corresponding period in 2011. Ships business showed a turnaround in its underwriting performance from a loss of $121 million to a profit of $27 million due to better claims experience. Improved claims experience also led to a significant growth in the underwriting profit of Motor Vehicle business and Accident & Health business from $2 million to $45 million and from $85 million to $137 million respectively.
On reinsurance inward business, gross and net premiums decreased from $2.6 billion to $2.5 billion and from $1.4 billion to $1.3 billion respectively in the first quarter of 2012 compared with the corresponding period in 2011, primarily attributable to a fall in premiums for Property Damage business. Nevertheless, the underwriting profit increased from $113 million to $219 million due to improvement in claims experience.
The total amount of revenue premiums of long-term in-force business was $51.9 billion in the first quarter of 2012, increasing by 12.9 per cent over the same period of 2011.
Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 20.9 per cent to $36.2 billion whereas Individual Life and Annuity (Linked) business decreased by 6.3 per cent to $11.5 billion. Contributions of Retirement Scheme business grew by 12.0 per cent to $3.4 billion.
New office premiums (excluding Retirement Scheme business) of long-term business for the first quarter of 2012 increased by 12.9 per cent to $19.1 billion compared with the same period of 2011. Individual Life and Annuity (Non-Linked) business increased significantly by 34.1 per cent to $15.1 billion in terms of new office premiums. On the other hand, new office premiums for Individual Life and Annuity (Linked) business plunged by 29.5 per cent to $4.0 billion.
In respect of policies issued to Mainland visitors, new office premiums amounted to $1.8 billion, representing 9.6 per cent of the total new office premiums ($19.0 billion) for individual business in the first quarter of 2012.
A summary of provisional statistics of the Hong Kong insurance business for the first quarter of 2012 is in the Annex. Further details can be downloaded from the OCI's website: www.oci.gov.hk.
Ends/Thursday, May 31, 2012
Issued at HKT 15:00
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