Industry Updates

General Insurance Market Performance in 2008

In 2008, gross and net premiums of general insurance business recorded a growth of 11.3% to HK$27.019 billion and 12.3% to HK$19.158 billion respectively compared with 2007. Nonetheless, underwriting profit lowered from $2.398 billion to $1.510 billion, with Accident & Health business registering a profit of $508 million being the largest contributor, followed by Property Damage business chalking up a profit of $490 million.

On direct business, gross and net premiums increased by 11.6% to $21.582 billion and by 13.9% to $16.031 billion respectively in 2008, benefiting from favourable performance of Accident & Health business whose gross and net premiums were $6.936 billion and $6.024 billion respectively, as well as Pecuniary Loss business whose gross and net premiums were $1.456 billion and $845 million respectively.

The underwriting profit of direct business receded sharply from $1.223 billion to $519 million in 2008 due to adverse claims experience. Specifically, Motor Vehicle business reversed from a profit of $11 million to a loss of $259 million, Property Damage business reported a substantial dip in profit from $413 million to $127 million, and the loss recorded in Employees' Compensation business widened from $164 million to $498 million. On the other hand, Accident & Health business performed strongly with its profit expanding from $257 million to $497 million, of which $219 million was related to Medical business and $278 million to Non-Medical business.