The insurance industry's overall underwriting profit fell to $441 million in the first quarter, down 30.8% on the same period last year, the Office of the Commissioner of Insurance says.

The drop was mainly due to the significant deterioration in the underwriting performance of the ships business, turning from a profit of $50 million to a loss of $177 million.

The property damage business remained the largest contributor to the overall underwriting profit, although shrinking from $214 million to $183 million.

In the first quarter, general insurance business gross premiums remained steady at $6.79 billion while net premiums rose 0.5% to $4.9 billion.

On direct business, gross premiums rose 3.4% to $5.55 billion and net premiums grew 4.3% to $4.02 billion. With significant deterioration in the underwriting performance of ships business, the underwriting profit of direct business dropped from $424 million to $274 million.

Vehicle business down

Underwriting profit of the motor vehicle business fell from $82 million to $24 million while the underwriting result of the employees' compensation business turned from a loss of $63 million to a profit of $3 million.

On reinsurance inward business, gross and net premiums fell 13% to $1.24 billion and 14% to $881 million. The underwriting profit reduced from $213 million to $167 million due to decline in premiums written.

The total revenue premiums of long-term in-force business rose 23.9% to $38.15 billion. Revenue premiums of non-linked individual life and annuity business grew 16.2% to $18.45 billion while the linked individual life and annuity business rose 33.7% to $13.26 billion.

Retirement business grows

Contributions of retirement scheme business rose 32.5% to $5.67 billion. Total insurance benefits paid rose 28.9% to $12.21 billion.

New office premiums (excluding retirement scheme business) of long-term business rose 32.4 % to $16.21 billion. Non-linked individual life and annuity business grew 22.9% to $5.98 billion in terms of new office premiums. New office premiums of linked individual life and annuity business grew 39% to $10.12 billion.

Office premiums in respect of the new policies issued to Mainland visitors amounted to $835 million, representing 5.2% of the total new office premiums for individual business.