Industry Updates

Market performance of Hong Kong insurance industry for first half of 2008

In the first half of 2008, gross and net premiums of general insurance business grew by 10.1% to HK$14,258 million and 9.6% to HK$10,251 million respectively compared with the same period in 2007. However, overall underwriting profit lowered from HK$1,039 million to HK$826 million.

The underwriting profit of direct business dropped to HK$306 million from HK$599 million in the first half of 2008, mainly due to adverse claims experience. Specifically, Motor Vehicle business turned from a profit of HK$16 million to a loss of HK$68 million, Property Damage business reported a significant dip in profit from HK$175 million to HK$55 million (caused partly by tropical storm Fengshen).

As regards the other major class of compulsory insurance business, i.e. Employees' Compensation business, its underwriting losses widened from HK$25 million to HK$172 million.