Last year saw a 3.2% rise in the general insurance business' gross premium, to $23 billion, while net premium also grew 6%, to $17 billion, the Office of the Commissioner of Insurance says.

The overall underwriting profit of general insurance business rose to $2.9 billion from $2.5 billion. More notable improvements were seen in the underwriting performance of the ships business, turning from a $156 million loss to a $41 million profit. The underwriting performance of pecuniary loss business also surged to a profit of $455 million from $280 million.

Largest contributor

The property damage business remained the largest contributor to the overall underwriting profit, although its profit fell from $995 million to $972 million.

On direct business, gross premiums grew 4.6% to $18 billion and net premiums were up 8.1% to $13 billion. Accident and health business was the main driver in premium growth, registering a $758 million rise in gross premiums to $5.2 billion. The underwriting result of direct business rose from $1.4 billion in 2005 to $1.6 billion last year.

For the two major classes of compulsory insurance business, the underwriting result of motor vehicle business fell from a profit of $384 million to $214 million, attributable to the deterioration in claims experience. The employees' compensation business turned around from a $136 million loss to an $800,000 profit, due to the significant release of over-provision for past claims.

On reinsurance inward business, gross and net premiums dipped 1.4% to $4.9 billion and 1.7% to $3.3 billion. The underwriting result continued to be profitable, with a rise in profit from $1.1 billion to $1.3 billion due to improvement in claims experience.

Long-term business

The long-term in-force business' total revenue premiums amounted to $135 billion, representing a 15.1% rise over 2005.

Revenue premiums of non-linked and linked individual life and annuity businesss grew 4.8% to $69.6 billion and 42.7% to $43 billion. Contributions of retirement scheme business also recorded an 8.2% growth, to $19.5 billion. On the benefit side, total insurance benefits paid to individuals increased 30% to $44.7 billion.

New business statistics showed long-term business' new office premiums, excluding retirement scheme business, increased 16.4% to $53.4 billion. Non-linked individual life and annuity business went down 13.8% to $20.9 billion in terms of new office premiums. New office premiums of linked individual life and annuity business grew 51.2% to $32.1 billion.

In respect of new policies issued to Mainland visitors, office premiums amounted to $2.8 billion, representing 5.3% of the total new office premiums for individual business.