PREMIUMS UP 13% IN HONG KONG, DRIVEN BY LIFE INSURANCE

Gross premiums in the Hong Kong insurance market rose 13% last year to total HK$137bn (US$17.6bn), according to official figures released by the Hong Kong Commissioner of Insurance, Clement Cheung. Growth in the market’s life insurance premiums, up 19% over 2004, was offset by a slight decrease in non-life premiums, down 1.4% to HK$22.5bn. Competition in employees’ compensation business was blamed for the drop in non-life premiums after rate cuts resulted in a further 20% fall in premium income, building on a decrease of 21% in 2004. Underwriting profits for Hong Kong’s non-life business were up over 12% from HK$2.2bn in 2004 to HK$2.5bn last year.