Macau life insurance market expands 62.5 per cent in first quarter

The life insurance market expanded 62.5 per cent year-on-year during the first quarter of the year in terms of gross premiums to MOP2.34 billion from MOP1.44 billion. The same trend was followed by gross claims that increased 44.3 per cent year-on-year to MOP616.87 million from MOP427.42 million. According to information released by the Monetary Authority of Macau (AMCM) China Life Insurance (Overseas) Co. Ltd. is the largest player in the market, achieving a share of 54.3 per cent in terms of gross premiums. This means that the slice of the market belonging to the Chinese company amounts to MOP1.27 billion. Second place is occupied by AIA International Ltd. with 24.8 per cent, which accounts for MOP579.3 million, while MassMutual Asia Ltd. collects a 5.9 per cent slice of the gross premiums pie, with MOP137.4 million. Non-life Insurance Life insurance has jumped by almost two-thirds although non-life insurance only increased 1.35 per cent year-on-year during the same period. This means that gross premiums for non-life insurance generated MOP573 million this year, while last year during the first quarter it generated MOP565.4 million. Regarding gross claims related to non-life insurance there was bad news for the insurance sector. Gross claims increased 34.68 per cent year-on-year during the first quarter of the year to MOP150 million from MOP111.4 million. The loss ratio for non-life insurance thus increased to 26.2 per cent from 19.7 per cent during the first quarter of 2014. In terms of market players by gross premiums, China Taiping Insurance (Macau) Company Ltd. takes MOP184 million, or 32.1 per cent of the total MOP573 million. Luen Fung Hang Insurance Company Ltd. is the second largest market player with 28.3 per cent and MOP162.4 million, while Macau Insurance Company Ltd. occupies third place with a share of 10.9 per cent (MOP62.7 million) of gross premiums. Min Xin achieves top performance However, and according to the statistics of AMCM, in terms of loss ratio the best performance belongs to Min Xin Insurance Company Ltd. with a ratio of 3.4 per cent as gross premiums account for MOP18.5 million and gross claims total MOP266,000. QBE Insurance (International) Ltd. registers a ratio of 7.7 per cent with premiums of MOP7.8 million and claims of MOP596,000. Delta Asia Insurance Ltd. takes third position registering a loss ratio of 7.8 per cent, as premiums account for MOP9.6 million and claims MOP751,000. In terms of insurance class, property all risks insurance generated the largest amount of gross premiums with MOP169.8 million, followed by employees compensation insurance (MOP131.5 million) and medical insurance (MOP86.3 million).