Source: asiainsurancereview.com

Overall general insurance business in Hong Kong has seen a 55.6% jump in underwriting profit to HK$512m ($66m) for the first three months of this year compared to HK$329m for the corresponding period last year, according to data from the Hong Kong Insurance Authority.

In the first quarter of 2021, overall general insurance gross premiums were flat at HK$18.3bn compared to 1Q2020 while net premiums fell by 2.2% to HK$11.9bn.

Direct business

Direct general insurance business in Hong Kong in 1Q2021 produced an overall underwriting profit of HK$396m, representing an increase of 30% over the corresponding quarter in 2020.

The increase in the underwriting gain resulted from reduced claims. Accident & Health business and Employees’ Compensation business generated underwriting profits of HK$211m and HK$113m respectively. Motor Vehicle business also returned a profit of HK$6.8m after many challenging years.

The gross and net premiums of direct business were HK$14bn in 1Q2021 (increased by 0.6% over 1Q2020) and HK$9.8bn (increased by 3.9%) respectively. Accident & Health business scaled back 8.2%, within which the Medical subclass dipped by 3.4% and the non-medical subclass collapsed by 47% as outbound travel was seriously inhibited.

Employees’ Compensation business ebbed by 10.3% due to slow economic activities amidst COVID-19, but Pecuniary Loss business sustained a solid growth of 36.3% riding on the upward adjustment of maximum property values under the Mortgage Insurance Programme. Meanwhile, the gross premiums of Property Damage business and Ships business expanded by 15.2% and 10.5% respectively.

Reinsurance inward business

In reinsurance inward business, the gross and net premiums were HK$4.3bn in 1Q2021 (decreased by 1.7% compared to 1Q2020) and HK$2.2bn (decreased by 22.3%) respectively. The growth in Property Damage business and General Liability business, attributable to rates hardening and additional demands, was fully offset by reduction in Motor Vehicle business.