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The Office of the Commissioner of Insurance today (August 31) released provisional statistics of the Hong Kong insurance industry for the first half of 2015.
Total gross premiums of the Hong Kong insurance industry in the first half of 2015 amounted to $184.9 billion, representing an increase of 13.6 per cent over corresponding period in 2014.
The total amount of revenue premiums of long term in-force business was $161 billion in the first half of 2015, increasing by 15.4 per cent over the same period of 2014. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 20.2 per cent to $125.1 billion whereas Individual Life and Annuity (Linked) business decreased by 7.3 per cent to $22.9 billion. Contributions of Retirement Scheme business grew by 25.1 per cent to $10.5 billion.
New office premiums (excluding Retirement Scheme business) of long term business for the first half of 2015 increased by 25.2 per cent to $68.7 billion compared with the same period of 2014. Individual Life and Annuity (Non-Linked) business increased by 29.8 per cent to $61 billion. On the other hand, new office premiums of Individual Life and Annuity (Linked) business decreased by 1.8 per cent to $7.5 billion.
In respect of policies issued to Mainland visitors, new office premiums amounted to $13.9 billion, representing 20.2 per cent of the total new office premiums ($68.5 billion) for individual business in the first half of 2015.
In the first half of 2015, gross and net premiums of general insurance business recorded a growth of 3 per cent to $23.9 billion and 3.5 per cent to $16.9 billion respectively, compared with the corresponding period in 2014. Overall underwriting profit however declined from $1.5 billion to $703 million.
On direct business, gross and net premiums gained 5.6 per cent to $18.6 billion and 3.2 per cent to $13.8 billion respectively in the first half of 2015, compared with the corresponding period in 2014, mainly driven by Accident and Health business (comprising Medical business) and General Liability business (comprising Employees' Compensation business). The former recorded a growth in gross premiums from $6.1 billion to $6.8 billion while the latter recorded a growth in gross premiums from $4.9 billion to $5 billion.
The underwriting profit of direct business decreased to $561 million in the first half of 2015 from $1.1 billion in the corresponding period in 2014. The underwriting profit of Accident and Health business, and General Liability business, shrank from $260 million to $117 million and from $292 million to $154 million respectively. In addition, the underwriting loss of Ships business widened from $36 million to $175 million.
On reinsurance inward business, gross premiums decreased from $5.5 billion to $5.2 billion whilst net premiums increased from $3 billion to $3.2 billion in the first half of 2015, compared with the corresponding period in 2014. The underwriting profit dropped from $435 million to $142 million due to deteriorated claims experience.
A summary of provisional statistics of the Hong Kong insurance business for the first half of 2015 is at annex. Further details can be downloaded from the website of the Office of the Commissioner of Insurance: www.oci.gov.hk.
Ends/Monday, August 31, 2015
Issued at HKT 15:01
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