Insurance gross premiums in Hong Kong jumped 15.2% to $72.4b

Check out how each segment fared.

According to the Office of the Commissioner of Insurance, Hong Kong insurance industry total gross premiums rose 15.2% in the first quarter year-on-year to $72.4 billion.

Long-term in-force business's total amount of revenue premiums grew 15.6% to $60 billion in the quarter.

Individual life and annuity (non-linked) business and individual life and annuity (linked) business revenue premiums rose 14.5% to $41.4 billion and 18.6% to $13.6 billion. Retirement Scheme business contributions grew 20.4% to $4.1 billion.

Long-term business new office premiums (excluding retirement scheme business) increased 17.9% to $22.5 billion year-on-year. Both individual life and annuity (non-linked) and individual life and annuity (linked) business recorded premium growth, as the former grew 16.4% to $17.5 billion and the latter 24.2% to $4.9 billion in terms of new office premiums.

For policies issued to Mainland visitors, new office premiums amounted to $2.8 billion, representing 12.5% of the total new office premiums ($22.5 billion) for individual business in the quarter.

In the first quarter, general insurance business gross and net premiums increased 13.1% to $12.4 billion and 15.1% to $8.8 billion over a year earlier. Overall underwriting profit declined to $657 million.

On direct business, gross and net premiums gained 12% to $9.5 billion and 13% to $7.1 billion in the first quarter over a year earlier, mainly driven by general liability business and accident and health business. The former recorded gross and net premiums of $2.6 billion and $2 billion, while the latter recorded $3.5 billion and $2.9 billion.

Direct business underwriting profit increased to $673 million. Accident and health business and motor vehicle business underwriting profit increased to $185 million and $83 million. The increase was partly offset by the decrease in general liability business's underwriting profit from $99 million to $34 million.

On reinsurance inward business, gross and net premiums increased to $2.9 billion and $1.7 billion. However, the underwriting performance showed a turnaround from a profit of $219 million to a loss of $15 million due to adverse claims experience.