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Market performance of Hong Kong insurance industry for the first quarter of 2018


31 May 2018


The Insurance Authority today (31 May 2018) released provisional statistics of the Hong Kong insurance industry for the first quarter of 2018, with total gross premiums amounting to $132.5 billion, representing an increase of 8.6% over the corresponding period in 2017.


Long term business

The total amount of revenue premiums of long term in-force business was $117 billion in the first quarter of 2018, increased by 8.3% over the same period of 2017.  Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 8% to $99.8 billion while those of Individual Life and Annuity (Linked) business increased by 19.6% to $8.4 billion. Contributions of Retirement Scheme business increased by 2.4% to $7.3 billion.

New office premiums (excluding Retirement Scheme business) of long term business in the first quarter of 2018 increased by 0.9% to $44.2 billion compared with the same period in 2017.  New office premiums of Individual Life and Annuity (Non-Linked) business decreased by 4% to $39.8 billion. On the other hand, those of Individual Life and Annuity (Linked) business increased by 96.8% to $4.3 billion.

New office premiums in respect of policies issued to Mainland visitors remained stable during the first quarter of 2018 after the peak in early 2017. Related premiums recorded a year-on-year 37.1% drop to $11.8 billion, accounting for 26.8% of the total new office premiums for individual business.

Similar to the statistics for 2017, about 95% of the policies issued to Mainland visitors were medical or protective in nature, such as critical illness, medical, whole life, term life and annuity products. In terms of premium payment pattern, about 99% of the policies were paid at regular intervals, i.e. non-single premiums.

General business

In the first quarter of 2018, gross and net premiums of general insurance business recorded an increase of 11.1% to $15.5 billion and 11.5% to $10.6 billion respectively compared with the corresponding period in 2017. Overall underwriting performance however recorded a loss of $166 million.

On direct business, gross and net premiums increased by 4.8% to $11.7 billion and 4.3% to $8 billion respectively in the first quarter of 2018 compared with the corresponding period in 2017, mainly driven by Accident & Health business (comprising Medical business) which recorded a growth in gross premiums from $4.6 billion to $5.1 billion.

The underwriting profit of direct business decreased to $167 million in the first quarter of 2018 from $398 million in the corresponding period in 2017. The drop was mainly attributable to the underwriting loss recorded in General Liability business (comprising Employees’ Compensation business) and Accident & Health business (comprising Medical business). The underwriting performance of these two types of business turned to a loss of $42 million and $3 million in the first quarter of 2018 from a profit of $85 million and $89 million in the corresponding period in 2017 respectively.

On reinsurance inward business, gross and net premiums increased 36% to $3.8 billion and 42.5% to $2.5 billion respectively in the first quarter of 2018 compared with the corresponding period in 2017. However, the underwriting loss widened from $15 million to $333 million.

A summary of provisional statistics of the Hong Kong insurance business for the first quarter of 2018 is in the annex. Further details can be downloaded from the website of the Insurance Authority (www.ia.org.hk).

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