Industry Updates

General Insurance Market Performance for the first three quarters of 2007

In the first three quarters of 2007, gross and net premiums for general insurance business recorded a modest growth of 4.3% to HK$18,809 million and 4.8% to HK$13,477 million respectively as compared with the corresponding period in 2006.

Overall underwriting result went down from HK$2,034 million to HK$1,783 million on account of deteriorating claims experience and higher management expenses.

Motor Vehicle business continued to deteriorate as gross premiums fell by 3.9% to HK$1,880 million. Ships business benefited from a wider scope of vessels covered by the Merchant Shipping (Local Vessels) Ordinance with effect from July 2, 2007 and recorded a rise in gross premiums by HK$11 million to HK$32 million.

Underwriting performance of the two major classes of compulsory insurance business, i.e. Motor Vehicle business and Employees' Compensation business (EC), both deteriorated. Underwriting profit of Motor Vehicle business decreased from HK$196 million to HK$13 million, whereas EC business reversed from a profit of HK$21 million to a loss of HK$87 million.