Sun Life Hong Kong Limited (Sun Life) posted a significant 229% year-on-year increase in new business annual premium equivalent (APE) during the first half of 2024 (H1 2024), according to data from the Hong Kong Insurance Authority (IA).
The company said this performance far outpaced the broader insurance market, which recorded a 29% rise in new business APE over the same period.
Sun Life’s broker channel was a key driver of the growth, with its new business APE surging by 318%.
The company maintained the top spot in broker channel performance during both the first and second quarters of 2024.
The agency channel also saw strong results, with a 57% year-on-year increase in APE. Sun Life’s high-net-worth business also contributed significantly, with first-year premiums (FYP) over HK$10 million rising by 32% quarter-on-quarter in the second quarter.
Christine Yeung (pictured), general manager for life and health at Sun Life Hong Kong, credited the company’s results to its comprehensive product lineup and cross-functional collaboration.
“This has been mainly driven by our comprehensive product portfolio that caters to our clients’ needs and the proactive collaboration of all our teams in driving business development,” she said.
She also noted that new products, including the SunJoy Global, SunGift Global, and SunWell series, had helped attract clients across different segments.
Looking forward, the company plans to continue expanding its product range through the rest of 2024.
Hong Kong’s broader insurance industry also saw positive developments in the first half of 2024.
Data from the IA showed a 5.1% increase in total gross premiums, reaching HK$310.9 billion. The long-term insurance segment grew by 5.5%, with total premiums reaching HK$273 billion.
Revenue from individual life and annuity (non-linked) policies rose 6.9% to HK$243.3 billion. However, the individual life and annuity (linked) business declined by 16%, bringing in HK$10.7 billion.
Meanwhile, premiums for retirement scheme business increased by 1.9% to HK$15.1 billion.
New office premiums for long-term business, excluding retirement schemes, rose 12.3% year-on-year to HK$115.9 billion. This included HK$111.3 billion from individual life and annuity (non-linked) policies, which saw a 15.5% increase, while linked products decreased by 34.7% to HK$4.3 billion.
Premiums from Mainland Chinese visitors fell by 6.9% to HK$29.7 billion, with their share of total new office premiums in individual business dropping from 31% to 25.7%.
The general insurance sector recorded a 2.4% increase in gross premiums, totalling HK$37.9 billion, while net premiums rose 5% to HK$24.4 billion. Gross claims paid out rose 13.7% to HK$17.3 billion, with overall underwriting profits up 33.9% to HK$1.9 billion.
The accident and health insurance segment saw the strongest growth, with premiums rising 12.5%, driven by demand for group medical and travel insurance.
Property damage premiums increased 3.4%, and motor vehicle insurance grew 8.5%. However, the pecuniary loss segment, which includes mortgage guarantee insurance, saw premiums decline by 35%, reflecting caution in the property market.
Direct business across all general insurance categories posted a 95.4% increase in underwriting profits, reaching HK$1.4 billion. The net claims incurred ratio for this segment declined slightly to 58.5%.
General liability insurance, which includes employees’ compensation, reported an underwriting profit of HK$0.8 billion, up 92.2%. The pecuniary loss segment also saw a notable increase in underwriting profit due to lower upfront commission payments in the mortgage guarantee business.
The Hong Kong insurance industry continues to grow amid new regulatory measures, particularly aimed at brokers working with Mainland Chinese visitors.
The new rules require brokers to ensure that unlicensed referrers do not participate in regulated insurance activities, such as selling policies or offering financial advice. Failure to comply could result in penalties, including the revocation of broker licenses.
Brokers must also implement thorough due diligence processes for referrers and maintain compliance records. Insurers working with these brokers are expected to provide training and oversight to ensure adherence to these new regulations.
Additionally, the IA will introduce fees for processing insurance intermediary license applications and other notifications starting this month. The fee structure, which was developed following industry consultation, is designed to cover the costs of regulatory oversight, including inspections and compliance monitoring.
