2007-05-31 Hong Kong
The Office of the Commissioner of Insurance on May 30 released provisional statistics of the Hong Kong insurance industry for the first quarter of 2007. In the first quarter, gross premiums for general insurance business remained comparable to that for the corresponding period of 2006, amounting to HK$6,792 million whilst net premiums slightly increased by 0.5% to HK$4,904 million. The overall underwriting profit of general insurance business decreased from HK$637 million to HK$441 million. As regards the two major classes of compulsory insurance business, i.e. Motor Vehicle business and Employees' Compensation (EC) business, decline in premium rates led to a reduction in the underwriting profit of Motor Vehicle business from HK$82 million to HK$24 million whereas improvement in claims experience turned the underwriting result of EC business from a loss of HK$63 million to a profit of HK$3 million. Revenue premiums of Individual Life and Annuity (Non-Linked) business and Individual Life and Annuity (Linked) business grew by 16.2% to HK$18,450 million and 33.7% to HK$13,256 million respectively.