General Insurance
Business
Despite a modest increase in
gross premiums of 1.8% to $22,958 million,
the general insurance sector recorded a decline
of 17.2% in underwriting profit to $2,067 million
in 2006.
Overview
Total gross and net premiums of general insurance
business increased slightly by 1.8% to $22,958
million and 3.6% to $16,198 million respectively
in 2006. The gross premiums represented 1.6%
of the Hong Kong Gross Domestic Product.
General Liability business (comprising mainly
employees’compensation (“EC”)
business), Accident and Health business and
Property Damage business remained the major
classes of general insurance business by gross
premiums written, each constituted more than
20% of the market total. Motor Vehicle business
ranked fourth while the remaining business
classes each constituted no higher than 6%
of the total gross premiums.
As a sign of deterioration in claims experience,
the overall net claims incurred ratio (“NCIR”)
(i.e. net claims incurred as a percentage of
earned premiums) increased from 48.9% in 2005
to 51.0% in 2006. Reflecting the general rise
in claims costs, general insurance business
suffered a 17.2% drop in underwriting profit
over 2005 to $2,067 million. The underwriting
margin (i.e. underwriting profit expressed
as a percentage of earned premiums) decreased
from 16.0% to 12.8% in 2006.
With the exception of Ships business which
recorded an underwriting loss, all other business
classes showed profitable underwriting results
in 2006. Property Damage business remained
the largest contributor to the overall underwriting
profit, followed by Pecuniary Loss and Goods
in Transit businesses. As for the two major
classes of compulsory insurance business, the
underwriting result of EC business continued
to improve with its loss diminishing from $136
million to $85 million in 2006 whereas that
for direct Motor Vehicle business deteriorated
with a significant reduction in profit from
$384 million to $158 million. Ships business
remained the worst performer, attributable
to deteriorating claims experience.
Figure 2.1 Overall Performance
of General Insurance Business
| |
2002
$m
|
2003
$m
|
2004
$m
|
2005
$m
|
2006
$m |
| Gross
Premiums |
23,447.6 |
24,291.8 |
22,866.3 |
22,545.8 |
22,958.0 |
| Net
Premiums |
15,903.2 |
16,570.8 |
15,966.9 |
15,641.7 |
16,198.1 |
| Technical
Reserves |
21,602.4 |
23,778.0 |
26,126.6 |
26,617.1 |
26,898.7 |
| Underwriting
Results: |
|
|
|
|
|
| Earned
Premiums |
14,560.3 |
16,020.6 |
15,772.1 |
15,647.8 |
16,100.0 |
| Underwriting
Expenses1 |
5,174.6 |
5,152.8 |
5,198.6 |
5,502.8 |
5,821.8 |
| Net
Claims Incurred |
8,142.5 |
9,387.4 |
8,351.3 |
7,647.8 |
8,211.2 |
| Underwriting
Profit/(Loss) |
1,243.2 |
1,480.5 |
2,222.2 |
2,497.2 |
2,067.0 |
| |
% |
% |
% |
% |
% |
| Growth
of Gross Premiums |
20.6 |
3.6 |
-5.9 |
-1.4 |
1.8 |
| Retention
Ratio |
67.8 |
68.2 |
69.8 |
69.4 |
70.6 |
| Commission
Payable Ratio |
19.6 |
18.7 |
19.3 |
20.2 |
20.4 |
| Net
Claims Incurred Ratio |
55.9 |
58.6 |
52.9 |
48.9 |
51.0 |
| Underwriting
Margin2 |
8.5 |
9.2 |
14.1 |
16.0 |
12.8 |
| Technical
Reserve Ratio3 |
135.8 |
143.5 |
163.6 |
170.2 |
166.1 |
Premium Incomes
Total gross premiums (comprising direct and
reinsurance inward business) increased slightly
by 1.8% to $22,958 million. The increase was
mainly driven by the strong momentum registered
in Accident and Health business. Net premiums
recorded a slightly higher growth of 3.6% to
$16,198 million. The retention ratio for 2006
was 70.6%, compared to 69.4% for 2005.
Figure 2.2 Growth of Premium
Income for General Insurance Business
The gross premiums of Accident and Health
business surged by 14.8% to $5,364 million
in 2006. Nevertheless, Motor Vehicle business
and Miscellaneous business (comprising Aircraft,
Ships, Pecuniary Loss and Treaty Reinsurance
businesses) dropped by 6.4% to $2,801 million
and by 7.8% to $2,647 million respectively.
General Liability and Goods in Transit businesses,
on the other hand, grew by 2.3% to $5,706 million
and by 1.4% to $1,175 million respectively.
As for Property Damage business, it only registered
a minimal decline of 0.1% and maintained at
$5,264 million.
Figure 2.3 Growth of Gross
Premiums for Major Lines of Business
Composition of Gross Premiums
Direct business and reinsurance inward business
accounted for 79.1% and 20.9% respectively
of total gross premiums in 2006, showing similar
composition as in 2005. General Liability,
Accident and Health and Property Damage businesses
topped the general insurance sector, constituted
24.9%, 23.4% and 22.9% respectively of the
total gross premiums. Motor Vehicle business
ranked fourth with its 12.2% share.
Figure 2.4 Composition of Gross
Premiums
| Class
of Business |
Direct & Reinsurance
Inward Business |
Direct
Business |
Reinsurance
Inward Business |
| |
2005
% |
2006
% |
2005
% |
2006
% |
2005
% |
2006
% |
| Accident & Health |
20.7 |
23.4 |
25.3 |
28.5 |
4.7 |
3.9 |
| Motor
Vehicle |
13.3 |
12.2 |
15.7 |
14.0 |
5.0 |
5.4 |
| Goods
In Transit |
5.1 |
5.1 |
5.5 |
5.4 |
3.7 |
4.0 |
| Property
Damage |
23.4 |
22.9 |
16.6 |
16.1 |
47.3 |
49.0 |
| General
Liability |
24.7 |
24.9 |
27.3 |
27.1 |
16.0 |
16.4 |
| Miscellaneous |
12.8 |
11.5 |
9.6 |
8.9 |
23.3 |
21.3 |
Claims
The overall claims experience for general
insurance business deteriorated in 2006. Overall
NCIR edged up by 2.1 percentage points to 51.0%.
On direct business, overall NCIR increased
from 52.2% to 55.3% in 2006. The star performer
was Pecuniary Loss business which recorded
the lowest NCIR, i.e. below 10%.
On reinsurance inward business, overall NCIR
improved from 36.3% to 32.9% in 2006.
Figure 2.5 Net Claims Incurred
Ratio
Technical Reserves
Technical reserves, comprising outstanding
claims provision (including provision for incurred
but not reported claims), unearned premiums
and unexpired risks provision slightly rose
by 1.1% to $26,899 million.
Overall technical reserve ratio (i.e. technical
reserves expressed as a percentage of net premiums
written) decreased from 170.2% in 2005 to 166.1%
in 2006. The technical reserve ratios of General
Liability and Motor Vehicle businesses remained
among the highest in 2006, albeit that of General
Liability business slightly declined from 316.5%
in 2005 to 311.6% in 2006 whereas that of Motor
Vehicle business moderately strengthened from
205.3% to 209.3% in 2006. As regards Accident
and Health business, the technical reserve
ratio decreased from 58.1% to 52.5% in 2006.
Figure 2.6 Technical Reserve
Ratio
| Class
of Business |
UPR & UER
Ratio1 |
Outstanding
Claims Provision Ratio2 |
Technical
Reserve Ratio3 |
| |
2005
% |
2006
% |
2005
% |
2006
% |
2005
% |
2006
% |
| Accident & Health |
34.2 |
31.9 |
23.9 |
20.6 |
58.1 |
52.5 |
| Motor
Vehicle |
45.0 |
44.8 |
160.3 |
164.5 |
205.3 |
209.3 |
| Goods
In Transit |
17.1 |
16.7 |
49.4 |
50.9 |
66.5 |
67.7 |
| Property
Damage |
43.4 |
44.6 |
68.3 |
67.2 |
111.7 |
111.8 |
| General
Liability |
57.0 |
54.2 |
259.5 |
257.4 |
316.5 |
311.6 |
| Miscellaneous |
67.5 |
66.8 |
131.4 |
152.0 |
198.9 |
218.8 |
| Overall |
45.9 |
44.2 |
124.3 |
121.9 |
170.2 |
166.1 |
Underwriting Results
The overall underwriting profit decreased
from $2,497 million in 2005 to $2,067 million
in 2006, representing a decline of 17.2%.
With the exception of Ships business which
recorded an underwriting loss of $249 million
in 2006, all other business classes recorded
underwriting profits. Property Damage business
remained the largest contributor to the overall
underwriting profit of the general insurance
business in 2006, achieving a profit of $772
million. Pecuniary Loss business and Goods
in Transit business came next, registering
$465 million and $319 million in underwriting
profits respectively. General Liability business
reported an underwriting profit of $146 million
in 2006. However, a major component of General
Liability business, i.e. EC business, continued
to incur an underwriting loss of $85 million
in 2006. Ships business remained the worst
performer, with its underwriting loss deteriorated
further from $156 million in 2005 to $249 million
in 2006 as a result of worsened claims experience.
On direct business, the underwriting profit
decreased from $1,441 million to $1,116 million.
All business classes maintained a profitable
position, except for Ships business, EC business
and Aircraft business. Property Damage business
continued to record the highest underwriting
profit of $355 million, followed by Pecuniary
Loss business of $302 million, Goods in Transit
business of $284 million and General Liability
(non-EC) business of $221 million. On the other
hand, Ships business was the worst performer
recording an underwriting loss of $246 million
in 2006. As for EC and Aircraft businesses,
an underwriting loss of $85 million and $2
million was recorded respectively in 2006.
On reinsurance inward business, the underwriting
profit also decreased from $1,057 million to
$951 million. Except for Ships business which
recorded an underwriting loss of $3 million,
all other classes of reinsurance business recorded
underwriting profits. Similar to direct business,
Property Damage business was the best performer,
recording an underwriting profit of $417 million.
Figure
2.7 Underwriting Results
Figure 2.8 Underwriting Margin
of Major Lines of Business
Statutory Business
Statutory business comprises three classes
of direct business - Motor Vehicle, EC (classified
as General Liability-Statutory business) and
Launch and Vessel Liability businesses (classified
as Ships-Statutory business). In 2006, they
altogether contributed $5,489 million in gross
premiums to the general insurance business
market, representing 30.2% of total direct
business gross premiums. EC business rebounded
from its third position in terms of gross premiums
for direct business in 2005 to the second position
in 2006. Its market share in the direct business
market slightly increased from 15.9% in 2005
to 16.1% in 2006.
Motor Vehicle Business
Gross premiums for direct Motor Vehicle business
decreased by 7.3% to $2,542 million in 2006,
while the number of vehicles covered increased
by 0.8% to 592,517, reflecting competition
for business intensified in the motor insurance
market in 2006. Due to deterioration in claims
experience with NCIR increasing from 42.1%
to 48.6%, the underwriting margin of direct
Motor Vehicle business decreased from 17.0%
in 2005 to 7.2% in 2006.
Figure 2.9 Motor Vehicle Business
| |
Unit |
2002 |
2003 |
2004 |
2005 |
2006 |
| Gross
Premiums |
$
million |
3,171.0 |
2,902.5 |
2,835.9 |
2,741.8 |
2,542.3 |
| Underwriting
Profit / (Loss) |
$
million |
79.5 |
13.2 |
276.3 |
384.1 |
158.3 |
| |
|
|
|
|
|
|
| Growth
of Gross Premiums |
% |
14.6 |
-8.5 |
-2.3 |
-3.3 |
-7.3 |
| Net
Claims Incurred Ratio |
% |
54.7 |
63.4 |
48.4 |
42.1 |
48.6 |
| Underwriting
Margin |
% |
3.5 |
0.6 |
12.6 |
17.0 |
7.2 |
| |
|
|
|
|
|
|
| Number
of Vehicles Covered |
|
612,228 |
548,630 |
565,866 |
587,659 |
592,517 |
Employees' Compensation
Business
After the acute premium rate cut that happened
across the EC insurance market in previous
years, the situation seemed to have abated
in 2006. Gross premiums of EC business increased
by 4.9% to $2,919 million in 2006. The number
of EC policies in force also increased by 16.4%
to 348,324. With improved claims experience,
the underwriting loss for EC business diminished
from $136 million in 2005 to $85 million in
2006.
Figure 2.10 Employees' Compensation
Business
| |
Unit |
2002 |
2003 |
2004 |
2005 |
2006 |
| Gross
Premiums |
$
million |
4,280.7 |
4,415.8 |
3,479.7 |
2,782.0 |
2,919.1 |
| Underwriting
Profit / (Loss) |
$
million |
(161.7) |
(107.6) |
(263.9) |
(136.4) |
(84.9) |
| |
|
|
|
|
|
|
| Growth
of Gross Premiums |
% |
58.4 |
3.2 |
-21.2 |
-20.1 |
4.9 |
| Net
Claims Incurred Ratio |
% |
75.5 |
75.9 |
80.0 |
71.0 |
69.5 |
| Underwriting
Margin |
% |
-6.4 |
-3.8 |
-9.4 |
-5.5 |
-3.5 |
| |
|
|
|
|
|
|
| Number
of Policies in Force |
|
254,303 |
266,111 |
303,623 |
299,330 |
348,324 |
Launch and Vessel Liability
Business
Gross premiums of Launch and Vessel Liability
business increased from $22 million in 2005
to $28 million in 2006, with the number of
launches, ferry vessels and pleasure vessels
covered increased by 7.1% to 6,992. Such business
posted an underwriting loss of $8 million as
compared with a profit of $8 million in 2005.
Figure 2.11 Launch and Vessel
Liability Business
| |
Unit |
2002 |
2003 |
2004 |
2005 |
2006 |
| Gross
Premiums |
$
million |
17.9 |
17.5 |
20.1 |
22.3 |
27.6 |
| Underwriting
Profit / (Loss) |
$
million |
(4.7) |
5.4 |
4.0 |
7.7 |
(8.0) |
| |
|
|
|
|
|
|
| Growth
of Gross Premiums |
% |
-20.8 |
-2.2 |
14.9 |
10.9 |
23.8 |
| Net
Claims Incurred Ratio |
% |
91.5 |
12.4 |
21.2 |
6.3 |
118.1 |
| Underwriting
Margin |
% |
-44.3 |
51.4 |
40.4 |
61.1 |
-58.0 |
| |
|
|
|
|
|
|
| Number
of Launches, Ferry Vessels & Pleasure
Vessels Covered |
|
5,631 |
5,645 |
6,087 |
6,529 |
6,992 |
Pure Reinsurers' Business
Pure reinsurers (i.e. insurers that are only
authorised to carry on reinsurance business
in or from Hong Kong) recorded a decline in
gross premiums by 4.7% to $1,934 million in
2006. Their total underwriting profit also
decreased from $633 million in 2005 to $487
million in 2006, a drop of 23.1% over 2005.
The top 5 pure reinsurers captured an aggregate
share of 84.1% in terms of gross premiums,
indicating the continuing high concentration
of business in the pure reinsurers’market
persisted in 2006.
Figure 2.12 Pure Reinsurers'
Business
| |
Unit |
2002 |
2003 |
2004 |
2005 |
2006 |
| Gross
Premiums |
$
million |
2,893.9 |
3,260.9 |
2,371.3 |
2,030.3 |
1,934.0 |
| Underwriting
Profit / (Loss) |
$
million |
240.7 |
296.1 |
621.5 |
633.0 |
486.8 |
| |
|
|
|
|
|
|
| Growth
of Gross Premiums |
% |
65.4 |
12.7 |
-27.3 |
-14.4 |
-4.7 |
| Net
Claims Incurred Ratio |
% |
60.4 |
67.7 |
51.0 |
36.8 |
32.9 |
| Underwriting
Margin |
% |
11.1 |
9.9 |
25.9 |
31.9 |
27.8 |
Figure 2.13 Top 5 Pure Reinsurers
by Gross Premiums in 2006
| Ranking
of Insurers |
Gross
Premiums |
Market
Share |
| |
$
m |
% |
| 1.
The Toa Reinsurance Company, Limited |
431 |
22.3 |
| 2.
China International Reinsurance Company
Limited |
394 |
20.3 |
| 3.
Munich Reinsurance Company |
348 |
18.0 |
| 4.
Swiss Reinsurance Company |
335 |
17.3 |
| 5.
Transatlantic Reinsurance Company |
121 |
6.2 |
| Total
Gross Premiums Written by Top 5 Reinsurers
in 2006 |
1,629 |
84.1 |
| Corresponding
Figure for 2005 |
1,655 |
81.5 |
Assets Maintained in Hong Kong
Pursuant to the local asset requirement under
section 25A of the ICO, insurers other than
pure reinsurers and captive insurers carrying
on general insurance business in or from Hong
Kong are required to maintain assets in Hong
Kong to match their local insurance liabilities.
As at their financial year ended in 2006, assets
maintained by these insurers in Hong Kong totalled
$75,496 million, a 6.5% increase over 2005.
Mortgage portfolio remained the largest asset
type, registering $27,280 million or 36.1%
of total local assets, followed by Deposits
and Cash (25.4%) and Fixed and Variable Interest
Securities (19.1%).
Figure 2.14 Breakdown of Assets
Maintained in Hong Kong
| Category
of Assets |
2004 |
2005 |
2006 |
| |
$m |
% |
$m |
% |
$m |
% |
| Deposits & Cash |
19,804.1 |
25.3 |
16,842.5 |
23.7 |
19,172.2 |
25.4 |
| Fixed & Variable
Interest Securities |
9,343.0 |
12.0 |
11,493.8 |
16.2 |
14,416.8 |
19.1 |
| Insurance
Debts |
4,479.4 |
5.7 |
3,970.9 |
5.6 |
3,340.4 |
4.4 |
| Letters
of Credit |
2,964.0 |
3.8 |
2,905.1 |
4.1 |
2,837.9 |
3.8 |
| Investments
in Associated/Subsidiary Companies |
2,535.0 |
3.2 |
2,401.0 |
3.4 |
2,047.9 |
2.7 |
| Land & Buildings |
1,288.3 |
1.6 |
1,456.1 |
2.1 |
1,883.6 |
2.5 |
| Other
Assets |
|
|
|
|
|
|
| - Mortgage
Portfolio1 |
34,829.1 |
44.6 |
29,417.7 |
41.5 |
27,279.5 |
36.1 |
| -
Others |
2,948.7 |
3.8 |
2,404.8 |
3.4 |
4,517.6 |
6.0 |
| Total |
78,191.6 |
100.0 |
70,891.9 |
100.0 |
75,495.9 |
100.0 |
Market Analysis
A total of 129 insurers reported to the IA
on their Hong Kong general insurance business
for 2006. Of these insurers, 81 made underwriting
profits while 36 suffered underwriting losses,
with the remaining reporting nil business for
the year.
In 2006, gross premiums written by the top
10 and top 20 insurers amounted to $8,976 million
and $14,065 million respectively. These premiums
represented 39.1% and 61.3% of the market share,
similar to the corresponding figures of 37.7%
and 58.6% recorded in 2005. At the lower end
of the scale, 29 insurers wrote gross premiums
below the $1.1 million level in 2006.
Comparing with the market share of the top
10 general business insurers by overall gross
premiums (39.1%), the market share of the top
10 insurers by gross premiums of individual
major classes of general insurance business
was higher, namely Accident and Health business
(68.3%), Motor Vehicle business (59.7%), Property
Damage business (49.7%) and EC business (64.5%).
Figure 2.15 Distribution of
Insurers’Market Share and Underwriting
Performance
| Ranking
of Insurers |
Range
of Gross Premiums |
Market
Share |
Number
of Insurers |
| |
|
$m |
% |
Profit-making* |
Loss-making |
| 1
- 10 |
2005 |
618.9
- 1,309.4 |
37.7 |
10 |
0 |
| |
2006 |
637.5
- 1,410.2 |
39.1 |
10 |
0 |
| 11
- 20 |
2005 |
416.6
- 534.4 |
20.9 |
9 |
1 |
| |
2006 |
394.2
- 576.7 |
22.2 |
7 |
3 |
| 21
- 50 |
2005 |
121.4
- 345.8 |
30.0 |
24 |
6 |
| |
2006 |
104.7
- 393.5 |
29.3 |
20 |
10 |
| 51
- 100 |
2005 |
0.2
- 121.2 |
10.9 |
36 |
14 |
| |
2006 |
1.1
- 104.0 |
9.4 |
35 |
15 |
| Remaining |
2005 |
<0.2 |
0.5 |
10 |
8 |
| |
2006 |
<1.1 |
0.0 |
9 |
8 |
| Total |
2005 |
|
100.0 |
89 |
29 |
| |
2006 |
|
100.0 |
81 |
36 |
Figure 2.16 Top 10 Insurers
by Overall Gross Premiums in 2006
| Ranking
of Insurers |
Gross
Premiums |
Market
Share |
| |
|
$m |
% |
| 1. |
American
Home Assurance Company |
1,410 |
6.1 |
| 2. |
HSBC
Insurance (Asia) Limited |
1,359 |
5.9 |
| 3. |
Bank
of China Group Insurance Company Limited |
1,213 |
5.3 |
| 4. |
The
Ming An Insurance Company (Hong Kong),
Limited |
846 |
3.7 |
| 5. |
Asia
Insurance Company, Limited |
727 |
3.2 |
| 6. |
QBE
Hongkong & Shanghai Insurance Limited |
720 |
3.1 |
| 7. |
AXA
General Insurance Hong Kong Limited |
701 |
3.1 |
| 8. |
Zurich
Insurance Company |
691 |
3.0 |
| 9. |
Wing
Lung Insurance Company Limited |
671 |
2.9 |
| 10. |
ACE
Insurance Limited |
638 |
2.8 |
| Total
Gross Premiums Written by Top 10 Insurers
in 2006 |
8,976 |
39.1 |
| Corresponding
Figure for 2005 |
8,516 |
37.7 |
Figure 2.17 Top 10 Insurers
by Gross Premiums of Major Classes in 2006
| Accident & Health
Business |
| Ranking
of Insurers |
Market
Share |
| 1. |
HSBC
Insurance (Asia) Limited |
13.7% |
| 2. |
American
International Assurance Company (Bermuda)
Limited |
10.5% |
| 3. |
BUPA
(Asia) Limited |
10.3% |
| 4. |
Blue
Cross (Asia-Pacific) Insurance Limited |
8.4% |
| 5. |
AXA
China Region Insurance Company Limited |
7.3% |
| 6. |
American
Home Assurance Company |
6.1% |
| 7. |
The
Prudential Assurance Company Limited |
3.9% |
| 8. |
Hang
Seng Insurance Company Limited |
2.8% |
| 9. |
ACE
Insurance Limited |
2.7% |
| 10. |
Bank
of China Group Insurance Company Limited |
2.6% |
| Top
10 Insurers' Market Share |
68.3% |
| Number
of Insurers : 74 |
|
| Motor
Vehicle Business |
| Ranking
of Insurers |
Market
Share |
| 1. |
AXA
General Insurance Hong Kong Limited |
8.7% |
| 2. |
Bank
of China Group Insurance Company Limited |
8.0% |
| 3. |
The
Ming An Insurance Company (Hong Kong),
Limited |
7.3% |
| 4. |
The
Pacific Insurance Company, Limited |
7.0% |
| 5. |
Zurich
Insurance Company |
6.8% |
| 6. |
QBE
Hongkong & Shanghai Insurance Limited |
6.2% |
| 7. |
Anglo
Starlite Insurance Company Limited |
4.7% |
| 8. |
HSBC
Insurance (Asia) Limited |
3.8% |
| 9. |
Target
Insurance Company, Limited |
3.7% |
| 10. |
The
Toa Reinsurance Company, Limited |
3.5% |
| Top
10 Insurers' Market Share |
59.7% |
| Number
of Insurers : 62 |
|
| Property
Damage Business |
| Ranking
of Insurers |
Market
Share |
| 1. |
CNOOC
Insurance Limited |
9.7% |
| 2. |
American
Home Assurance Company |
6.5% |
| 3. |
HSBC
Insurance (Asia) Limited |
5.7% |
| 4. |
The
Toa Reinsurance Company, Limited |
4.9% |
| 5. |
Bank
of China Group Insurance Company Limited |
4.4% |
| 6. |
Asia
Insurance Company, Limited |
4.1% |
| 7. |
TT
Club Mutual Insurance Limited |
3.9% |
| 8. |
MSIG
Insurance (Hong Kong) Limited |
3.8% |
| 9. |
Hang
Seng Insurance Company Limited |
3.5% |
| 10. |
The
Ming An Insurance Company (Hong Kong),
Limited |
3.2% |
| Top
10 Insurers' Market Share |
49.7% |
Number
of Insurers : 85
|
|
| Employees'
Compensation Business |
| Ranking
of Insurers |
Market
Share |
| 1. |
Bank
of China Group Insurance Company Limited |
14.4% |
| 2. |
Wing
Lung Insurance Company Limited |
11.0% |
| 3. |
Sun
Alliance and London Insurance plc |
6.9% |
| 4. |
The
Ming An Insurance Company (Hong Kong),
Limited |
5.9% |
| 5. |
Sun
Hung Kai Properties Insurance Limited |
5.5% |
| 6. |
QBE
Hongkong & Shanghai Insurance Limited |
5.0% |
| 7. |
Asia
Insurance Company, Limited |
5.0% |
| 8. |
AXA
General Insurance Hong Kong Limited |
4.3% |
| 9. |
MSIG
Insuarnce (Hong Kong) Limited |
3.4% |
| 10. |
Falcon
Insurance Company (Hong Kong) Limited |
3.1% |
| Top
10 Insurers' Market Share |
64.5% |
| Number
of Insurers : 57 |
|
Market Performance for the First
Three Quarters of 2007
According to the provisional statistics for
the first three quarters of 2007, gross and
net premiums for general insurance business
recorded a modest growth of 4.3% to $18,809
million and 4.8% to $13,477 million respectively
as compared with the corresponding period in
2006. However, the overall underwriting
result went down from $2,034 million to $1,783
million on account of deteriorating claims
experience and higher management expenses.
On direct business, gross premiums and net
premiums increased by 4.7% to $15,074 million
and 5.2% to $10,960 million respectively in
the first three quarters of 2007, primarily
driven by medical business whose gross premiums
surged by 20.2% to $3,642 million and net premiums
by 19.2% to $3,308 million. Despite a
rising number of insured vehicles, motor vehicle
business continued to contract with gross premiums
falling by 3.9% to $1,880 million. On
the other hand, ships business benefited from
a wider scope of vessels covered by the Merchant
Shipping (Local Vessels) Ordinance with effect
from 2 July 2007, and recorded a rise in gross
premiums attributable to statutory business
by $11 million to $32 million.
Underwriting profit of direct business shrank
from $1,207 million to $893 million in the
first three quarters of 2007, largely attributable
to unfavourable outturn of motor vehicle business,
ships business and employees’compensation
business. Soft market conditions resulted in
a plunge in underwriting profit from $196 million
to $13 million for motor vehicle business as
well as a reversal from a profit of $21 million
to a loss of $87 million for employees’compensation
business. Adverse claims experience was
the primary cause for an underwriting loss
of $91 million for ships business compared
with a profit of $21 million for the corresponding
period in 2006.
On reinsurance inward business, gross and net
premiums grew by 2.9% to $3,736 million and 3.4%
to $2,517 million respectively in the first three
quarters of 2007, while underwriting profit improved
slightly from $827 million to $890 million, mainly
due to the release of claims reserve.