Insurance sector reports 36% profit decline in 2024

The local insurance industry experienced a sharp decline in profits in 2024, with total earnings falling by 36.1% compared to the previous year, according to the Monetary Authority of Macao’s (AMCM) latest annual report.

Despite growth in premiums and improved underwriting results, the sector reported a combined loss of MOP4.4 billion in 2024. The primary cause was a significant decrease in financial income, which led to net financial and other losses totaling MOP4.6 billion.

At the end of 2024, Macau had 27 licensed insurance companies, including 13 specializing in life insurance and the rest in general insurance.

According to AMCM, the sector employed 818 people, a slight increase of 0.6% year-on-year. The number of licensed insurance intermediaries declined by 5% to 7,558, while the total number of valid intermediary licenses stood at 18,471.

The report shows that gross premiums rose 5.1% to MOP38.9 billion, driven largely by a 5.2% increase in life insurance premiums.

Sector employment edged up slightly, while licensed intermediaries decreased. Whole life insurance contributed notably with a MOP 20 billion rise. Life insurance accounted for 92.5% of total premiums in 2024.

Underwriting profits rose to MOP2 billion, up from MOP600 million in 2023, reflecting stronger core insurance operations.

Claims paid fell 15.3% to MOP18.9 billion, with life insurance claims dropping 15.5%, mainly due to lower maturity benefit payouts.

Overall claim ratios fell from 60.2% in 2023 to 48.5% in 2024.

Total assets in the insurance sector grew 3% year-on-year, reaching MOP267.5 billion by the end of 2024. NS