Insurance gross premiums up 14.5%
August 30, 2013
Total gross premiums of the Hong Kong insurance industry amounted to $143.7 billion in the first half of 2013, up 14.5% on the same period in 2012.
Office of the Commissioner of Insurance said today the total amount of revenue premiums for long-term in-force business was $120.9 billion for the period, up 14.9%.
Individual life and annuity (non-linked) business and individual life and annuity (linked) business revenue premiums rose 14.6% to $82.8 billion and 20.6% to $28.2 billion. Retirement scheme business contributions grew 2.6% to $8.2 billion.
Long-term business new office premiums (excluding retirement scheme business) rose 21.1% to $45.8 billion year-on-year. Both individual life and annuity (non-linked) and individual life and annuity (linked) business recorded premium growth - the former up 18% to $35.1 billion and the latter up 33.4% to $10.5 billion, in terms of new office premiums.
For policies issued to Mainland visitors, new office premiums amounted to $6 billion, representing 13.1% of total new office premiums ($45.7 billion) for individual business.
General insurance business gross and net premiums increased 12.5% to $22.8 billion and 14.1% to $16.2 billion. Overall underwriting profit fell to $1.5 billion.
On direct business, gross and net premiums grew 11.1% to $17.3 billion and 12.6% to $13 billion, mainly driven by general liability business and accident and health business. The former recorded gross and net premiums of $5 billion and $3.9 billion, while the figures for the latter were $6.1 billion and $5.2 billion.
Direct business underwriting profit increased to $1.2 billion. Property damage business and motor vehicle business underwriting profit rose to $239 million and $109 million. The increase was partly offset by the decrease in goods in transit business underwriting profit from $133 million to $97 million.
Reinsurance inward business gross premiums and net premiums increased to $5.5 billion and $3.2 billion. However, the underwriting profit dropped from $572 million to $367 million due to adverse claims experience.