In 2011, gross and net premiums of general insurance business recorded a growth of 10.7% to $34.7 billion and 8.5% to $23.8 billion respectively compared with 2010. Overall underwriting profit also recorded an increase from $2.6 billion in 2010 to $3 billion in 2011.
On direct business, gross and net premiums gained 6.4% to $25.6 billion and 6.3% to $18.8 billion respectively in 2011 compared with 2010. Accident & Health business (comprising Medical business) continued to grow with gross and net premiums reaching $8.9 billion and $7.4 billion respectively. General Liability business (comprising Employees?? Compensation business) and Motor Vehicle business also contributed to the premium growth. The former recorded gross and net premiums of $6.6 billion and $4.8 billion respectively, while the latter recorded $3.2 billion and $2.6 billion respectively. However, owing to the slowdown in property transactions, gross and net premiums of Pecuniary Loss business (comprising Mortgage Guarantee business) dropped by 21.4% to $1.3 billion and 37.7% to $677 million respectively.
Direct business managed to sustain an underwriting profit of $1.9 billion in 2011, similar to that of 2010. The underwriting profit of Motor Vehicle business shrank significantly from $157 million to $42 million and the underwriting loss of Ships business worsened from $38 million to $142 million due to deterioration in claims experience. Such negative impact, however, was largely offset by the underwriting profit of Pecuniary Loss business, which surged from $543 million to $744 million due to release of claims reserve.
(Source: The Office of the Commissioner of Insurance)