Hong Kong insurance premiums rise 8% as Wang Fuk Court claims hit property line

Domestic property damage underwriting profit collapsed 97.2% to HK$15.8m in 2025.

The Hong Kong general insurance market’s total gross premiums increased by 8% year-on-year (YoY) to $14.1b (HK$108.5b) in 2025.

Similarly, net premiums of the market climbed 6.3% YoY to $9.6b (HK$74.1b), against which total gross claims of $7.2b (HK$55.4b) were paid, a 4.5% YoY increase, data from the Insurance Authority showed.

The general business’s overall operating profit was $1.5b (HK$11.4b), up by 39.7% YoY, of which $377.0m (HK$2.9b) was attributable to underwriting profit (decreased by 12.5% YoY).

In the direct business segment, gross premiums grew by 6.6% YoY to $7.1b (HK$54.8b) and net premiums rose by 5.7% YoY to $4.9b (HK$37.8b).

Gross claims paid out inside this segment increased by 3.9% YoY to $3.8b (HK$29.1b).

Growth was largely propelled by domestic accident and health insurance, which brought in $3.1b (HK$23.7b), up 10.8% YoY.

Direct business underwriting profit jumped by 174.7% YoY to $416.0m (HK$3.2b), lifted by financial turnarounds in domestic pecuniary loss insurance—which moved from a $182.0m (HK$1.4b) loss to a $65.0m (HK$0.5b) profit—and accident and health lines, which swung from a $52.0m (HK$0.4b) loss to a $117.0m (HK$0.9b) profit.

Conversely, underwriting profit for domestic property damage plummeted by 97.2% YoY to $2.1m (HK$15.8m), down from $78.0m (HK$0.6b), following heavy claims and reserves linked to a major fire at Wang Fuk Court.

The reinsurance inward business saw gross premiums rise by 9.4% YoY to $7.0b (HK$53.7b) and net premiums increase by 7% YoY to $4.7b (HK$36.2b), with gross claims rising by 5.1% YoY to $3.4b (HK$26.3b).

This segment was driven by overseas property damage business at $2.5b (HK$19.6b) and accident and health business at $1.4b (HK$10.6b).

However, reinsurance suffered an overall underwriting loss of $52.0m (HK$0.4b)—a drop of 118.1% YoY—caused by weak underwriting returns across overseas property damage, general liability, and accident and health lines.

As of 31 December 2025, total assets held within Hong Kong's general insurance sector grew to $43.9b (HK$337.9b), with net assets standing at $17.7b (HK$136.5b).

(US$1.00 = HK$7.84)