Industry Updates

Market Performance of the Hong Kong Insurance Industry for the first quarter of 2008

In the first quarter of 2008, gross and net premiums of general insurance business recorded a growth of 12.5% to HK$7,640 million and 11.7% to HK$5,478 million respectively compared with the same period in 2007.
Overall underwriting profit also surged from HK$441 million to HK$638 million. Property Damage business remained the largest contributor to this outcome with a profit of HK$151 million.

Underwriting performance of the two major classes of compulsory insurance business, i.e. Motor Vehicle business and Employees' Compensation business (EC), both deteriorated. Compensation business that reverted from a profit of HK$3 million to a loss of HK$83 million and Motor Vehicle business that suffered a significant drop in profit from HK$24 million to HK$2 million.