Hong Kong's general insurance business gross premiums grew 10.1% to $14.258 billion in the first half of the year, while net premiums rose 9.6% to $10.251 billion. However, overall underwriting profit dropped from $1.039 billion to $826 million.

The Office of the Commissioner of Insurance today said, driven by growth in accident and health business, and pecuniary loss business, gross and net premiums of direct business increased 11% to $11.487 billion and 13% to $8.537 billion.

The underwriting profit of direct business dropped to $306 million from $599 million, mainly due to adverse claims experience. Specifically, motor vehicle business turned from a profit of $16 million to a loss of $68 million, property damage business profit decreased from $175 million to $55 million, and the losses employees' compensation business incurred grew from $25 million to $172 million.

Health business grows

Nonetheless, performance of accident and health business improved markedly from a profit of $148 million to $241 million, of which $142 million was related to non-medical business and $99 million to medical business.

Gross premiums of reinsurance inward business surged 6.6% to $2.771 billion, while net premiums fell 5% to $1.714 billion. Underwriting profit was lifted from $440 million to $520 million, riding on sustained release of claims reserve.

Total revenue premiums of long term in-force business were $91.945 billion, up 19.7% over the same period last year.

Retirement scheme contributions rise

Revenue premiums of individual life and annuity (non-linked) business and individual life and annuity (linked) business rose 21.4% to $42.363 billion and 21.3% to $35.936 billion.

Retirement scheme business contributions grew 11.9%, to $12.124 billion. Total insurance benefits paid to individuals rose 11.3%, to $29.643 billion.

New office premiums of long term business, excluding retirement scheme business, grew 25.5%, to $41.192 billion, led by individual life and annuity (non-linked) business, whose premiums surged 54%, to $14.301 billion. Premiums for individual life and annuity (linked) business saw a modest rise of 14.3%, to $26.653 billion.