Gross and net premiums for general insurance business registered a modest increase of 1.8% to $14.5 billion and 2.4% to $10.5 billion in the first half of the year, compared with the same period last year.

Overall underwriting performance also improved from a profit of $826 million to $1.294 billion, the Office of the Commissioner of Insurance announced today.

On direct business, gross and net premiums gained 2% to $11.711 billion and 2.9% to $8.781 billion during the first six months, driven again by accident & health business whose gross and net premiums were $4.09 billion and $3.551 billion, as well as construction-related employees' compensation business whose gross and net premiums were $582 million and $498 million.

Direct business underwriting profit advanced from $306 million to $925 million in the first half of 2009 due to favourable claims experience. Specifically, property-damage business returned a profit of $318 million compared with $55 million for the same period of 2008 when tropical storms inflicted severe losses.

Employees' compensation business also recovered from a loss of $172 million to a profit of $18 million, while non-statutory ships and motor vehicle businesses managed to trim their respective losses from $98 million to $12 million and from $68 million to $26 million.

On reinsurance inward business, gross and net premiums edged up by 0.9% to $2.797 billion and 0.3% to $1.719 billion. Underwriting profit reduced from $520 million to $368 million due to adverse claims experience.

Total revenue premiums of long term in-force business were $74.841 billion, losing 18.6% over the same period of 2008.

The revenue premiums of individual life and annuity (non-linked) business grew by 0.7% to $42.664 billion whereas individual life and annuity (linked) business plunged by 51.7% to $17.345 billion.

Retirement-scheme business contributions added 9.4% to $13.264 billion, while total insurance benefits paid to individuals dropped 4.9%, to $28.204 billion, during the period.

Long-term business new office premiums, excluding retirement-scheme business, for the first half of the year contracted by 52.6% to $19.517 billion compared with the same period in 2008. This was attributable to a 7.3% drop in individual life and annuity (non-linked) business that made up $13.263 billion, and a massive retrenchment of 77.4% in individual life and annuity (linked) business that accounted for $6.025 billion.