(Percentage changes in brackets in the following paragraphs represent changes over 2022)
Hong Kong general insurance market maintained a modest growth in total gross written premiums (“GWP”) of 4.6% to HK$67,335 million in 2023, in alignment with the full resumption of economic activities. Overall underwriting profit, however, shrank by 76.3% to HK$1,027 million in 2023.
The premium growth reported by the market in 2023 was mainly driven by Accident & Health (“A&H”) business and Property Damage business, which achieved increases of 12.2% and 10.3% respectively on the back of new businesses and rates hardening. However, the growth was partially offset by the decline in Pecuniary Loss business of 19.6% amid conservative sentiments in the property market.
The diminution in overall underwriting profit in 2023 was mainly related to the deteriorating performance reported in A&H business, Property Damage business and Pecuniary Loss business caused by emergence of latent medical claims and full resumption of economic activities after the pandemic, the extreme weather conditions, i.e. Typhoon Saola and Black Rainstorm, in early September 2023 and reserve adjustment for reverse mortgage insurance.
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