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The Office of the Commissioner of Insurance today (May 31) released provisional statistics of the Hong Kong insurance industry for the first quarter of 2016.
Total gross premiums of the Hong Kong insurance industry in the first quarter of 2016 amounted to $101.0 billion, representing an increase of 6.6 per cent over the corresponding period in 2015.
The total amount of revenue premiums of long-term in-force business was $88.0 billion in the first quarter of 2016, increasing by 7.5 per cent over the same period of 2015. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 15.9 per cent to $73.8 billion whereas Individual Life and Annuity (Linked) business decreased by 38.7 per cent to $7.3 billion. Contributions of Retirement Scheme business grew by 10.7 per cent to $5.4 billion.
New office premiums (excluding Retirement Scheme business) of long-term business for the first quarter of 2016 increased by 5.9 per cent to $38.6 billion compared with the same period of 2015. Individual Life and Annuity (Non-Linked) business increased by 16.2 per cent to $37.3 billion. On the other hand, new office premiums of Individual Life and Annuity (Linked) business decreased by 70.8 per cent to $1.2 billion.
In respect of policies issued to Mainland visitors, new office premiums amounted to $13.2 billion, representing 34.2 per cent of the total new office premiums ($38.5 billion) for individual business in the first quarter of 2016.
In the first quarter of 2016, gross premiums of general insurance business recorded a growth of 1.1 per cent to $13.1 billion whilst net premiums recorded a decline of 2.1 per cent to $8.9 billion compared with the corresponding period in 2015. Overall underwriting profit decreased from $645 million to $574 million.
On direct business, gross premiums increased by 3.8 per cent to $10.6 billion whilst net premiums decreased by 2 per cent to $7.4 billion in the first quarter of 2016 compared with the corresponding period in 2015, mainly driven by Accident & Health business (comprising Medical business) and Ships business. The former recorded a growth in gross premiums from $3.8 billion to $4.2 billion while the latter recorded a growth in gross premiums from $1.2 billion to $1.4 billion.
The underwriting profit of direct business increased to $549 million in the first quarter of 2016 from $375 million in the corresponding period in 2015. The underwriting performance of Ships business showed a turnaround from a loss of $213 million to a profit of $97 million, offsetting the fall in the underwriting profit of Accident & Health business and Pecuniary Loss business from $122 million to $55 million and from $97 million to $36 million respectively.
On reinsurance inward business, gross premiums decreased from $2.7 billion to $2.4 billion and whilst net premiums maintained at $1.5 billion in the first quarter of 2016 compared with the corresponding period in 2015. Due to adverse claims experience, the underwriting profit dropped from $270 million to $25 million.
A summary of provisional statistics of the Hong Kong insurance business for the first quarter 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/Tuesday, May 31, 2016
Issued at HKT 15:00
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