The general insurance business' gross and net premiums recorded a slight year-on-year growth of 1.7% to $23.9 billion and 2.7% to $17 billion, the Office of the Commissioner of Insurance says.

Overall underwriting profit of general business fell 5.6% to $1.8 billion last year. The property damage business remained the largest contributor to the overall underwriting profit, with an underwriting profit of $682 million. This was followed by goods in transit and pecuniary loss business, with underwriting profits amounting to $412 million and $358 million.

Underwriting results of accident and health, motor vehicle and general liability business fell, with a reduced profit of $130 million, $282 million and an enlarged loss of $163 million.

On the direct business front, gross premiums fell 1.5% to $17.9 billion whereas net premiums rose 0.6% to $12.6 billion. Underwriting profit fell 24.6% to $903 million.

Compulsory insurance

The performance of the two major classes of compulsory insurance business - motor vehicle and employees' compensation - deteriorated. Motor vehicle business' underwriting profit fell 22.8% to $213 million, attributable to a rise in the net claims incurred ratio. Employees' compensation's underwriting result deteriorated from a loss of $264 million to $520 million, due to a general decline in premium rates and worsened claims experience during the year.

For reinsurance inward business, gross and net premiums rose 12.9% to $6 billion and 9.2% to $4.5 billion. Underwriting profit grew 24.2% to $944 million, as a result of a rise in net earned premiums and release of claims over-provision.

Total revenue premiums of long term in-force business amounted to $117 billion, up 16.9% on 2004.

Non-linked revenue premiums of individual life and annuity business and linked individual life and annuity business grew 17.3% to $66.5 billion and 20.6% to $ 30.2 billion. Contributions of retirement scheme business also recorded 11.1% growth, to $18 billion. On the benefit side, total insurance benefits paid to individuals rose 8%, to $34.4 billion.

Office premiums grow

New office premiums, excluding retirement scheme business, of long term businesses rose 18.9% to $45.9 billion. New office premiums of non-linked individual life and annuity business recorded a 23.2% growth to $24.3 billion. For linked individual life and annuity, new office premiums grew 14.8%, to $21.3 billion.

During the last three quarters of 2005, office premiums in respect of the new policies issued to Mainland visitors amounted to $1.8 billion, representing 5% of the total new office premiums for individual business during the period.