The general insurance business's gross premiums in Hong Kong dropped 2.2 percent to 6.79 billion Hong Kong dollars (about 876.13 million U.S. dollars) in the first quarter, the Office of the Commissioner of Insurance said Thursday.

At the same time, the net premiums fell 0.6 percent to 4.88 billion Hong Kong dollars (about 629.68 million U.S. dollars), compared with the same period last year.

Hong Kong Office of the Commissioner of Insurance said the general insurance business's overall underwriting profit rose from 63 million Hong Kong dollars (about 8.13 million U.S. dollars) to 637 million Hong Kong dollars (about 82.19 million U.S. dollars). The rise was attributed to the improvement in the ships' business underwriting performance, turning from a loss of 533 million Hong Kong dollars (about 68.77 million U.S. dollars) to a profit of 50 million Hong Kong dollars (about 6.45 million U.S. dollars).

Property-damage business remained the largest contributor to the overall underwriting profit, although its profit shrank from 259 million Hong Kong dollars (about 33.42 million U.S. dollars) to 214 million Hong Kong dollars (about 27.61 million U.S. dollars) . It was followed by the pecuniary-loss business with a profit of 122 million Hong Kong dollars (about 15.74 million U.S. dollars), and the motor-vehicle business, with a profit of 107 million Hong Kong dollars (about 13.81 million U.S. dollars).

On direct business, gross premiums rose 3 percent to 5.37 billion Hong Kong dollars (about 692.90 million U.S. dollars) and net premiums rose 6.3 percent to 3.86 billion Hong Kong dollars ( about 498.06 million U.S. dollars) in the first quarter. With the improved performance in ships business, the underwriting result of direct business achieved a profit of 424 million Hong Kong dollars (about 54.71 million U.S. dollars) in the first quarter, against a loss of 123 million Hong Kong dollars (about 15.87 million U.S. dollars) for the same period last year.

On reinsurance inward business, the gross and net premiums dropped 17.7 percent to 1.43 billion Hong Kong dollars (about 184. 52 million U.S. dollars) and 20.1 percent to 1.03 billion Hong Kong dollars (about 132.90 million U.S. dollars). The underwriting result continued to be profitable, with an increase in profit from 186 million Hong Kong dollars (24 million U.S. dollars) to 213 million Hong Kong dollars (about 27.48 million U.S. dollars) due to improvement in claims experience recorded in the quarter.

Total revenue premiums of long-term in-force business amounted to 30.8 billion Hong Kong dollars (about 3.97 billion U.S. dollars) in the first quarter, up 22 percent over the same period last year.

On the benefit side, total insurance benefits paid to individuals during the period grew 28.2 percent to 9.47 billion Hong Kong dollars (about 1.22 billion U.S. dollars).

During the first quarter, office premiums in respect of the new policies issued to Mainland visitors amounted to 652 million Hong Kong dollars (about 84.13 million U.S. dollars), accounting for 5. 3 percent of the total new office premiums for individual business during the period.

Source: Xinhua