Industry Updates

General Insurance Market Performance for the first three quarters of 2008

In the first three quarters of 2008, gross and net premiums of general insurance business recorded a growth of 11.3% to HK$20.934 billion and 11.1% to HK$14.974 billion respectively compared with the same period in 2007. However, underwriting profit lowered from $1.783 billion to $814 million.

On direct business, gross and net premiums increased by 12.3% to $16.932 billion and 14.6% to $12.557 billion respectively in the first three quarters of 2008, propelled by Accident & Health business whose gross and net premiums were $5.591 billion and $4.910 billion respectively, as well as Pecuniary Loss business whose gross and net premiums were $1.156 billion and $652 million respectively.

The underwriting profit of direct business dropped from $893 million to $130 million in the first three quarters of 2008 due to adverse claims experience. Specifically, Motor Vehicle business turned from a profit of $13 million to a loss of $223 million, Property Damage business reported a dip in profit from $247 million to $24 million and the loss incurred by Employees' Compensation business widened from $87 million to $375 million. On the other hand, Accident & Health business sustained a strong performance with its profit expanding from $255 million to $342 million, of which $124 million was related to Medical business and $218 million to Non-Medical business.