Hong Kong insurance industry shows mild increase of premiums in Q1 2022

Total gross premiums written across the Hong Kong insurance industry in the first quarter of 2022 grew by 0.5% when compared to the same period in 2021, to $158.2 billion according to the region’s Insurance Authority (IA).

hong kongProvisional statistics of the Hong Kong insurance industry released by the IA shows that total revenue premiums of long term in-force business were $138.9 billion in the first quarter of 2022, showing a decrease of 0.2% compared to the same period in 2021.

This comprises revenue premiums of individual life and annuity (non-linked) business that grew by more than 0.1% to $113.3 billion, while those of individual life and annuity (linked) business declined by 17% to $7.9 billion.

At the same time, contributions of retirement scheme business totalled $15.8 billion in the same period, an increase of 9.2%.

The total amount of payment made to policy holders in terms of claims and benefits saw a decrease of 4.1%, $71.6 billion.

Overall, gross and net premiums of general insurance business during the first quarter of 2022 totalled $19.3 billion and $12 billion, respectively. Against which total gross claims payment was $7.2 billion, a decline of 0.9% compared to last year. The overall underwriting profit rose sharply from $512 million to $1.063 billion.

Regarding reinsurance inward business, gross and net premiums totalled $5.1 billion and $2.3 billion, respectively. The IA explained the increment of gross premiums was led by Ships business, Property Damage business and Accident & Health business, attributable to rates hardening and new business.

Nevertheless, the overall underwriting profit dropped from $117 million to $98 million, with the net claims incurred ratio edging up from 61.2% to 61.5%.

On direct insurance business, the IA revealed that gross premiums increased by 1.5%, to $14.2 billion, while net premiums decreased by 1.1%, to $9.6 billion.

General Liability (comprising Employees’ Compensation) business and Pecuniary Loss (Others) business grew by 9.2% and 32.8% respectively, supported by rates hardening and new business, partly offset by reduction in Ships business and Motor Vehicles business of 4.5% and 4.9% respectively.

Overall, direct business generated an underwriting profit of $965 million, which is up by 144% in the same period last year. The IA stated that this result benefitted from favourable claims experience in Ships business and General Liability business.

Despite this visible improvement, according to the IA, the underwriting profit of Accident & Health business narrowed from $211 million to $151 million, but still compares well with a loss of $58 million in the fourth quarter of 2021.

I'm a song witter, story teller and likes to blog
%d bloggers like this: