Industry Updates

Hong Kong General Insurance Market Performance for 2006

In 2006, gross and net premiums of general insurance business recorded a growth of 3.2% to HK$23,274 million and 6.0% to HK$16,587 million respectively compared with 2005. The overall underwriting profit of general insurance business increased from HK$2,497 million to HK$2,879 million.

More notable were the improvements in the underwriting performance of Ships business turning from a loss of HK$156 million to a profit of HK$41 million, and that of Pecuniary Loss business increasing from a profit of HK$280 million to HK$455 million. Property Damage business remained the largest contributor to the overall underwriting profit, albeit reducing from a profit of HK$995 million to HK$972 million.

As regards the two major classes of compulsory insurance business, i.e. Motor Vehicle business and Employees' Compensation business (EC), the underwriting result of Motor Vehicle business reduced from a profit of HK$384 million to HK$214 million attributable to the deterioration in claims experience whereas that of the EC business turnaround from a loss of HK$136 million to a profit HK$0.8 million due to the significant release of over-provision for past claims.