The Hong Kong insurance industry showed a rise of total gross premiums by 5.1% to HK$310.9bn ($39.9bn) for the first half of 2024 over the corresponding period in 2023, according to provisional data released by the Insurance Authority (IA).
Long term business
Total revenue premiums of in-force long-term business were HK$273bn in the first half of 2024 (increased by 5.5% year on year), mainly comprising HK$243.3bn from Individual Life and Annuity (Non-Linked) business (increased by 6.9% y-o-y), HK$10.7 bn from Individual Life and Annuity (Linked) business (decreased by 16% y-o-y), and HK$15.1 bn from Retirement Scheme business (increased by 1.9% y-o-y). During the same period, total claims and benefits paid to policyholders amounted to HK$183.6bn (increased by 18.2% y-o-y).
New office premiums (excluding Retirement Scheme business) of long-term business were HK$115.9bn (increased by 12.3% y-o-y), made up of HK$111.3bn from Individual Life and Annuity (Non-Linked) business (increased by 15.5% y-o-y) and HK$4.3bn from Individual Life and Annuity (Linked) business (decreased by 34.7% y-o-y).
Around 44,000 Qualifying Deferred Annuity Policies were issued, attracting HK$2.8bn in terms of premiums or 2.4% of the total for individual businesses.
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Long Term Business (New Business)
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1H2024
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1H2023
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Change
|
|
|
HK$ m
|
HK$ m
|
%
|
|
|
Individual Life and Annuity (Non-Linked)
|
111,266
|
96,366
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15.5%
|
|
|
Individual Life and Annuity (Linked)
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4,303
|
6,590
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-34.7%
|
|
|
Other Individual Business
|
30
|
24
|
25.0%
|
|
|
Non-Retirement Scheme Group Business
|
266
|
158
|
68.4%
|
|
|
Total (exclude Retirement Scheme)
|
115,865
|
103,138
|
12.3%
|
|
|
Source: Insurance Authority
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|
General business
In the first half of 2024, the gross and net premiums of general insurance business were HK$37.9bn (increased by 2.4% y-o-y) and HK$24.4bn (increased by 5% y-o-y) respectively, against which total gross claims of HK$17.3bn were paid (increased by 13.7% y-o-y ). The overall underwriting profit improved from HK$1.5bn to HK$1.9bn (increased by 33.9% y-o-y).
On direct business, the gross and net premiums were HK$27.8bn (increased by 3.2% y-o-y ) and HK$19bn (increased by 2.1% y-o-y) respectively. The gross premiums of Accident & Health business reached HK$11.7bn (increased by 12.5%), benefitting from the growth of group medical business and sustained demand for travel insurance. The gross premiums of Property Damage business and Motor Vehicles business also rose to HK$3.4bn (increased by 3.4% y-o-y) and HK$2.8bn (increased by 8.5% y-o-y) respectively, while the gross premiums of Pecuniary Loss (comprising Mortgage Guarantee) business reduced to HK$1.3bn (decreased by 35% y-o-y) amid conservative sentiments in the property market.
Direct business generated an overall underwriting profit of HK$1.4bn (increased by 95.4% y-o-y), with the net claims incurred ratio dipping slightly from 60.8% to 58.5%. Due to better claims experience and release of reserves, General Liability (comprising Employees’ Compensation) business reported an underwriting profit of HK$0.8bn (increased by 92.2% y-o-y), while Pecuniary Loss business also saw a surge in underwriting profit to HK$0.5bn (increased by 128% y-o-y) due to lesser payment of upfront commission in respect of Mortgage Guarantee business.
On reinsurance inward business, the gross and net premiums were HK$10.1bn (increased by 0.4% y-o-y) and HK$5.4bn (increased by 16.8%) y-o-y respectively. An expansion of Accident & Health business and General Liability business outweighed the contraction of Pecuniary Loss business, Property Damage business, and Goods in Transit business. The overall underwriting profit shrank by 23% to HK$0.6bn, with the net claims incurred ratio shooting up from 42.3% to 54.1%, mainly attributable to adverse claims experience.