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The Office of the Commissioner of Insurance (OCI) today (November 30) released provisional statistics for Hong Kong's insurance industry covering the first three quarters of 2010.
In the first three quarters of 2010, gross and net premiums of general insurance business both registered double-digit growth, from 13.2% to $24.4 billion and 10.3% to $17.2 billion respectively, compared with the corresponding period in 2009. However, the overall underwriting profit declined from $2.0 billion to $1.7 billion.
On direct business, gross and net premiums grew 9.3% to $19.0 billion and 7.3% to $14.1 billion respectively in the first three quarters of 2010 compared with the corresponding period in 2009, driven again by accident and health business (comprising Medical business), gross and net premiums of which were $6.5 billion and $5.4 billion respectively. Other major classes of business, including employees' compensation, property damage and motor vehicle businesses, also contributed to the premium growth. Their gross and net premiums were $2.9 billion and $2.4 billion, $2.6 billion and $1.4 billion, and $2.2 billion and $1.9 billion respectively.
The underwriting profits of direct business increased from $1.2 billion to $1.4 billion. The profits of pecuniary loss business rose significantly from $109 million to $438 million, propelled by the strong premium growth in mortgage guarantee business and lower claims for credit business. Motor vehicle business also recorded a material improvement in its underwriting results due to a premium rates increase together with better claims experience, with the claims incurred figures of an insurer placed in liquidation excluded. Property damage business, however, showed a drop in profit from $401 million to $211 million mainly attributable to deteriorating claims experience.
On reinsurance inward business, gross and net premiums increased from $4.1 billion to $5.4 billion and from $2.5 billion to $3.1 billion respectively in the first three quarters of 2010 compared with the corresponding period in 2009. Nevertheless, the underwriting profit reduced from $793 million to $288 million as a result of adverse claims experience.
Total revenue premiums of long term in-force business was $129.1 billion in the first three quarters of 2010, increasing by 10.3% over the same period of 2009.
Revenue premiums of individual life and annuity (non-linked) business and individual life and annuity (linked) business increased by 16.7% to $79.4 billion and by 11.1% to $30.8 billion respectively. Contributions of retirement scheme business plunged by 10.6% to $16.9 billion. Total insurance benefits paid to individuals increased by 29.5% to $54.9 billion.
New office premiums (excluding retirement scheme business) of long term business for the first three quarters of 2010 increased significantly by 25.1% to $42.4 billion compared with the same period in 2009. Both individual life and annuity (non-linked) and individual life and annuity (linked) business recorded significant premium growth. The former increased by 28.7% to $29.5 billion and the latter increased by 19.5% to $12.7 billion in terms of new office premiums.
In respect of new policies issued to Mainland visitors, office premiums amounted to $3.2 billion, representing 7.5% of the total new office premiums ($42.2 billion) for individual business in the first three quarters of 2010.
A summary of provisional statistics for Hong Kong's insurance business covering the first three quarters of 2010 is at Annex. Details can be downloaded from the OCI's website: www.oci.gov.hk.
Ends/Tuesday, November 30, 2010
Issued at HKT 15:06
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