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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 2013.
Total gross premiums of the Hong Kong insurance industry in the first quarter of 2013 amounted to $72.4 billion, representing an increase of 15.2 per cent over the corresponding period in 2012.
The total amount of revenue premiums of long-term in-force business was $60 billion in the first quarter of 2013, increasing by 15.6 per cent over the same period of 2012.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business increased by 14.5 per cent to $41.4 billion and by 18.6 per cent to $13.6 billion respectively. Contributions of Retirement Scheme business grew by 20.4 per cent to $4.1 billion.
New office premiums (excluding Retirement Scheme business) of long-term business for the first quarter of 2013 increased by 17.9 per cent to $22.5 billion compared with the same period of 2012. Both Individual Life and Annuity (Non-Linked) and Individual Life and Annuity (Linked) business recorded premium growth, with the former increased by 16.4 per cent to $17.5 billion and the latter increased by 24.2 per cent to $4.9 billion in terms of new office premiums.
In respect of policies issued to Mainland visitors, new office premiums amounted to $2.8 billion, representing 12.5 per cent of the total new office premiums ($22.5 billion) for individual business in the first quarter of 2013.
In the first quarter of 2013, gross and net premiums of general insurance business recorded a growth of 13.1 per cent to $12.4 billion and 15.1 per cent to $8.8 billion respectively compared with the corresponding period in 2012. Overall underwriting profit however declined from $853 million to $657 million.
On direct business, gross and net premiums gained 12 per cent to $9.5 billion and 13 per cent to $7.1 billion respectively in the first quarter of 2013 compared with the corresponding period in 2012, 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 $2.6 billion and $2 billion respectively, while the latter recorded $3.5 billion and $2.9 billion respectively.
The underwriting profit of direct business increased to $673 million in the first quarter of 2013 from $634 million in the corresponding period in 2012. The underwriting profit of Accident & Health business and Motor Vehicle business increased from $137 million to $185 million and from $45 million to $83 million respectively. Such increase was partly offset by the decrease in underwriting profit of General Liability business from $99 million to $34 million.
On reinsurance inward business, gross and net premiums grew from $2.5 billion to $2.9 billion and from $1.3 billion to $1.7 billion respectively in the first quarter of 2013 compared with the corresponding period in 2012. However, the underwriting performance showed a turnaround from a profit of $219 million to a loss of $15 million due to adverse claims experience.
A summary of provisional statistics of the Hong Kong insurance business for the first quarter of 2013 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, May 31, 2013
Issued at HKT 15:16
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