HK INSURERS SEE UNDERWRITING PROFIT FALL FOR H1 2007

The Hong Kong insurance sector saw its overall underwriting profit fall to HK$1.04bn ($133.2m) for the first half, down 23.6% on the same period last year, according to figures from the Office of the Commissioner of Insurance (OCI). Gross written premiums were up 6.7% year on year to HK$12.95bn, while net premiums rose 5.9% to HK$9.35bn. The major casualty of the half was the motor insurance sector, where profit fell from HK$135m to HK$16m, due to a general decline in premium rates. In ships, losses rose to HK$97m from HK$10m in H1 2006, mainly down to adverse claims experience. In property, profit fell from HK$223m to HK$175m. In the reinsurance sector, gross written premiums grew 14.8% to HK$2.6bn, although poor claims experience caused a deterioration in underwriting profit to HK$440m, from HK$530m in the same paeriod last year.