Insurance gross premiums up 12.7% to $263.3

Check out how each segment fared.

In a report, the Office of the Commissioner of Insurance announced today that the total Hong Kong insurance industry gross premiums increased 12.7% to $263.3 billion in 2012.

For long-term insurance business, office premiums of new Individual Life business grew 7.7% to $75.3 billion. Those for individual life (non-linked) business rose 18.9% to $58.2 billion, while those of individual life (linked) business fell 18.3% to $17.1 billion. The total number of new policies decreased 0.9% to 1,069,548.

In respect of in-force long-term business, total office premiums increased 12.7% to $224.1 billion. Yearly contributions for retirement scheme contracts administered by insurers increased 14.9% to $9.3 billion. At the end of last year, there were 54,795 retirement scheme contracts carrying net liabilities of $95.3 billion.

In-force office premiums of annuity and other businesses rose 67.6% to $3.8 billion, accounting for 1.7% of the total of long-term insurance business.

General insurance business recorded a year-on-year increase in gross and net premiums of 12.5% to $39.2 billion and 13.6% to $27 billion. The rise in gross premiums was mainly contributed by general liability business, which recorded a strong growth of 21.5% from $7.8 billion in 2011 to $9.5 billion in 2012.

The general insurance business overall underwriting profit decreased to $2 billion, mainly due to adverse claims experience. The net claims incurred ratio was 58% for 2012 compared with 55% for 2011.