HK's long-term insurance industry grows prominently in first half of 2004

Hong Kong's long-term insurance industry grew prominently in the first half of 2004, the Office of the Commissioner of Insurance of Hong Kong government said Monday in Hong Kong.

Benefiting from the economic recovery and the persistent low interest rates, the new office premiums - excluding the retirement-scheme business - achieved a remarkable growth of 96.8 percent over the same period of 2003 to reach 19.74 billion Hong Kong dollars (2.53 billion US dollars), it said.

The major component of the long-term business, the individual life and annuity (non-linked) business, recorded an increase of 56 percent in new office premiums to 10.8 billion Hong Kong dollars (1.38 billion US dollars).

Another major component of the long term business, the individual life and annuity (linked) business, also increased by 202.9 percent in new office premiums to 8.7 billion Hong Kong dollars (1.12 billion US dollars) in the first half of 2004.

The OCI said the gross premiums of general insurance business in the first half of 2004 dropped 2.9 percent to 12.3 billion Hong Kong dollars (1.58 billion US dollars) as compared with the corresponding period of 2003.

Net premiums, on the other hand, increased by 1.8 percent to 8.76 billion Hong Kong dollars (1.12 billion US dollars) due to higher retention rate, according to the OCI.

The overall underwriting profit of general insurance business improved from 0.8 billion Hong Kong dollars (0.1 billion US dollars) to 1.28 billion Hong Kong dollars (0.16 billion US dollars) as compared with the corresponding period in 2003, it said.

Source: Xinhua