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Market performance of Hong Kong insurance industry for the first half of 2017


1 September 2017


The Insurance Authority today (1 September) released provisional statistics of the Hong Kong insurance industry for the first half of 2017.

Total gross premiums of the Hong Kong insurance industry in the first half of 2017 amounted to $236.7 billion, representing an increase of 14.1% over corresponding period in 2016.

The total amount of revenue premiums of long term in-force business was $211.2 billion in the first half of 2017, increasing by 15.1% over the same period of 2016. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 16.1% to $181.2 billion while those of Individual Life and Annuity (Linked) business increased by 8.3% to $15.1 billion. Contributions of Retirement Scheme business grew by 12.7% to $12.2 billion.

New office premiums (excluding Retirement Scheme business) of long term business for the first half of 2017 decreased by 0.9% to $80.9 billion compared with the same period of 2016.  New office premiums of Individual Life and Annuity (Non-Linked) business decreased by 5.4% to $75 billion. On the other hand, those of Individual Life and Annuity (Linked) business increased by 158.8% to $5.4 billion.

In the first half of 2017, gross and net premiums of general insurance business recorded a growth of 6% to $25.5 billion and 6% to $17.6 billion respectively compared with the corresponding period in 2016. Overall underwriting profit decreased from $1.1 billion to $369 million.

On direct business, gross and net premiums increased by 4.2% to $19.7 billion and 2.4% to $13.8 billion respectively in the first half of 2017 compared with the corresponding period in 2016, mainly driven by Accident & Health business (comprising Medical business) and Property Damage business. The former recorded a growth in gross premiums from $7.1 billion to $8 billion while the latter recorded a growth in gross premiums from $2.2 billion to $2.3 billion.

The underwriting profit of direct business decreased to $356 million in the first half of 2017 from $774 million in the corresponding period in 2016, mainly attributable to deteriorating claims experience of both Property Damage business and General Liability business (comprising Employees’ Compensation business). The underwriting profit of former decreased from $299 million to $191 million and the underwriting performance of the latter turned from a profit of $70 million to a loss of $154 million.

On reinsurance inward business, gross and net premiums increased from $5.1 billion and $3.1 billion to $5.7 billion and $3.8 billion respectively in the first half of 2017 compared with the corresponding period in 2016. Due to deteriorating claims experience, the underwriting profit dropped from $301 million to $13 million.

A summary of provisional statistics of the Hong Kong insurance business for the first half of 2017 is in the annex. Further details can be downloaded from the website of the Insurance Authority (www.ia.org.hk).

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