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The Office of the Commissioner of Insurance (OCI) today (March 3) released provisional statistics of the Hong Kong insurance industry for 2005.
In 2005, gross and net premiums of general insurance business recorded a slight growth of 1.7% to HK$23,888 million and 2.7% to HK$17,033 million respectively.
Compared with 2004, overall underwriting profit of general business decreased from HK$1,957 million to HK$1,847 million last year. Property Damage business remained the largest contributor to the overall underwriting profit, with an underwriting profit of HK$682 million in 2005. The two other major contributors were Goods in Transit business and Pecuniary Loss business, with underwriting profits amounted to HK$412 million and HK$358 million respectively. Underwriting results of Accident & Health, Motor Vehicle and General Liability business all recorded deterioration, with a reduced profit of HK$130 million, HK$282 million, and an enlarged loss of HK$163 million respectively.
On direct business front, gross premiums declined by 1.5% to HK$17,883 million whereas net premiums increased slightly by 0.6% to HK$12,557 million in 2005. Underwriting profit decreased from HK$1,197 million in 2004 to HK$903 million in 2005. Performance of the two major classes of compulsory insurance business, i.e. Motor Vehicle business and Employees¡¯ Compensation business (¡°EC¡±) both deteriorated. Underwriting profit of Motor Vehicle business decreased from HK$276 million to HK$213 million, which was attributable to an increase in net claims incurred ratio. Underwriting result of EC business also deteriorated from a loss of HK$264 million to a loss of HK$520 million due to a general decline in premium rates and worsened claims experience during the year.
On reinsurance inward business, gross and net premiums increased by 12.9% to HK$6,005 million and 9.2% to HK$4,475 million respectively. Underwriting profit increased from HK$760 million in 2004 to HK$944 million in 2005, as a result of an increase in net earned premiums and release of claims over-provision.
Total revenue premiums of long term in-force business amounted to HK$116,983 million in 2005, representing an increase of 16.9 % over 2004.
Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business grew by 17.3% to HK$66,473 million and 20.6% to HK$ 30,159 million respectively. Contributions of Retirement Scheme business also recorded a growth by 11.1% to HK$18,003 million. On the benefit side, total insurance benefits paid to individuals during the said period increased by 8.0% to HK$34,390 million.
New business statistics for 2005 showed that new office premiums (excluding Retirement Scheme business) of long term business increased by 18.9% to HK$45,879 million. Individual Life and Annuity (Non-Linked) business increased by 23.2% to HK$24,290 million in terms of new office premiums. New office premiums of Individual Life and Annuity (Linked) business grew by 14.8 % to HK$21,251 million.
During the last three quarters of 2005, office premiums in respect of the new policies issued to Mainland visitors amounted to HK$1,820 million, representing 5.0% of the total new office premiums (HK$ 36,650 million) for individual business during the said period.
The summary on 2005 provisional statistics is attached as an annex. Provisional statistics in detail can be downloaded from the OCI¡¯s website: http://www.oci.gov.hk.
Ends/Friday, March 3, 2006
Issued at HKT 14:31
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