Industry Updates

General Insurance Market Performance for the first quarter of 2010

In the first quarter of 2010, gross and net premiums of general insurance business recorded a significant growth of 16.2% to $9.2 billion and 14.4% to $6.5 billion respectively compared with the corresponding period in 2009. Overall underwriting performance however recorded a decline in profit from $694 million to $559 million.

On direct business, gross and net premiums gained 6.9% to $7.0 billion and 6.4% to $5.2 billion respectively in the first quarter of 2010 compared with the corresponding period in 2009, propelled again by Accident & Health business (comprising Medical business) whose gross and net premiums were $2.6 billion and $2.2 billion respectively. Other major classes of business also contributed to the premium growth, including Property Damage business with gross and net premiums of $901 million and $483 million respectively, Motor Vehicle business with gross and net premiums of $677 million and $562 million respectively, and Employees' Compensation business with gross and net premiums of $1.0 billion and $834 million respectively.

The underwriting profit of direct business declined from $483 million to $383 million as overall claims experience worsened in the first quarter of 2010 compared with the corresponding period in 2009. The profit of Medical business and General Liability (Non-Statutory) business contracted from $88 million to $16 million and from $82 million to $31 million respectively whilst the loss of Employees?? Compensation business and Ships (Non-Statutory) business widened from $3 million to $50 million and $2 million to $37 million respectively. Motor Vehicle business, on the other hand, showed a material improvement in its underwriting result essentially attributable to better claims experience, with the claims incurred figures of an insurer that has been placed in provisional liquidation excluded.

(Source: The Office of the Commissioner of Insurance)