Total gross premiums of Hong Kong insurers fall in Q1

It slid by 7% to $147.2b.

Preliminary data from the Insurance Authority of Hong Kong showed that total gross premiums fell 7% to $147.2b in the first quarter.

It saw its total revenue premiums contract 8.9% to $126.6b, which was dragged down by “isolated transactions concerning Retirement Scheme business” for the same quarter in 2022 and the pattern of premium payment products in line with the Individual Life and Annuity business.

Further, total claims and benefits paid reached $78.5b.

During the quarter, the general insurance business experienced growth in both gross and net premiums. Gross premiums rose by 6.9% to reach $20.7b, while net premiums increased by 4.1% to reach $12.5b.

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Conversely, total gross claims paid decreased by 4.7% to $7.5b. As a result, the overall underwriting profit declined significantly from $1.1b to $513m.

In terms of direct business, the gross premiums for the first quarter of 2023 showed a 4.8% increase, amounting to $14.9b. Similarly, net premiums also experienced growth, rising by 4.4% to reach $10.1b.