Industry Updates

General Insurance Market Performance for the first quarter of 2009

In the first quarter of 2009, gross and net premiums of general insurance business recorded a modest growth of 3.9% to HK$7.940 billion and 3.1% to HK$5.647 billion respectively compared with the corresponding period in 2008, while overall underwriting performance improved slightly from a profit of $638 million to $694 million.

On direct business, gross and net premiums gained 4.4% to $6.520 billion and 5.9% to $4.861 billion respectively in the first quarter of 2009, propelled again by Accident & Health business, gross and net premiums of which were $2.324 billion and $2.028 billion respectively, as well as construction-related Employees' Compensation business whose gross and net premiums were $363 million and $319 million respectively.

The underwriting profit of direct business was boosted from HK$261 million to HK$483. Specifically, Medical business reported a surge in profit from $43 million to $88 million due to sustained premium growth, whereas losses registered by Non-Statutory Ships business diminished from $110 million to $2 million because of better claims experience. In the meantime, Employees' Compensation business trimmed its losses from $83 million to $3 million through release in claims reserve. Motor Vehicle business continued to be hindered by price competition, incurring a loss of $28 million against a marginal profit of $2 million for the same period last year.