Morgan Stanley: Strong growth in Hong Kong premiums continued in the first quarter, market competition may remain intense

Morgan Stanley released a research report stating that the Hong Kong Insurance Authority (HKIA) announced the premium data for the first quarter of 2025. The quarterly premium reached a record high, with intensified market competition, especially as companies like Manulife Financial-S strengthen their business through brokerage channels. AIA and Prudential recorded relatively steady growth, but their market share declined. Despite a high base in 2024, the annualized premium equivalent (APE) in Hong Kong for the first quarter of 2025 reached HKD 51.2 billion, a year-on-year increase of 25%, still setting a new historical high (the second highest was HKD 40.9 billion in the first quarter of 2024). The Hong Kong Insurance Authority did not disclose data on offshore or mainland visitors, as a comprehensive review is underway, but given the strong number of mainland visitors to Hong Kong, it is expected that the contribution ratio of local and offshore business will remain similar. Looking ahead to the second quarter of 2025, it is anticipated that annualized APE growth will continue to be strong, and market competition may remain fierce, as the illustration rate has been lowered to 6.5% before the end of June