Business premiums hit $637b as accident and health profit recovers

Accident and health business returned to profit of $0.5b.

Total gross premiums in Hong Kong’s insurance sector reached $637b in the first three quarters of 2025,  up 32.5% compared to the same period last year, according to provisional statistics from the Insurance Authority (IA).

During the period, the total gross and net premiums for general business stood at $82.9b, up 10.5% year-on-year (YoY), and $56b, up 8.3%, whilst total gross claims paid amounted to $38b, a slight decrease of 0.9%.

Direct business recorded gross premiums of $44.2b, an increase of 11.9%, and net premiums of $30.4b, up 9.1%, against which $21b in gross claims were paid, up 5.9%.

Growth in gross premiums was primarily driven by onshore accident and health business, which contributed $19.4b, an increase of 11.3% from the previous year.

The overall underwriting profit of $3.2b, up 29.9%, was also supported by accident and health business, which recovered from a loss of $0.4b to a profit of $0.5b.

On the reinsurance inward business, gross and net premiums rise 9% YoY and 7.3% YoY to $38.7b and $25.6b, respectively, whilst gross claims fell 8.2% YoY to $17.1b.

The increase in gross premiums was mainly driven by offshore property damage, up 10.8% YoY, and motor vehicle business, up 14.2% YoY. The overall underwriting profit of $0.3b was supported by the release of reserves in the offshore property damage segment.

As of 30 September 2025, total assets under general business grew to $335.5b and net assets stood at $135.1b.

In the long-term business segment, new office premiums excluding retirement scheme business increased by 55.9% YoY to $264.5b, driven largely by $251.5b from non-linked individual business, which recorded a 55.2% YoY increase.

Non-linked business consisted of $226.3b in participating business, up 60.1%, and $25.2b in other business, up 22.1%, alongside $12.7b from linked individual business, up 75.7%.

Around 50,000 Qualifying Deferred Annuity Policies were issued, contributing $3.2b or 1.2% of total individual business premiums, the report said.