WEDNESDAY, JANUARY 2, 1980
ANOTHER YEAR OF GROWTH FOR EXPORT CREDIT INSURANCE
CORPORATION ****
THE BUSINESS OF THE HONG KONG EXPORT CREDIT INSURANCE
CORPORATION HAS BEEN GROWING STEADILY WITH INSURED EXPORTS UP BY 38 PER CENT IN 1978/79 OVER THE PREVIOUS YEAR TO NEARLY $2.5 BILLION IN VALUE COMPARED WITH A 22 PER CENT INCREASE FOR OVERALL DOMESTIC EXPORTS.
THIS WAS STATED BY THE SECRETARY FOR ECONOMIC SERVICES THE HON. DAVID JEAFFRESON WHEN THE CORPORATION'S 1978/79 ANNUAL REPORT WAS TABLED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MR. JEAFFRESON ALSO NOTED THAT BOTH GROSS INCOME FROM PREMIUMS AND THE UNDERWRITING RESERVE HAVE EXCEEDED $10 MILLION FOR THE FIRST TIME, AND THE NUMBER OF CURRENT POLICIES IS AT AN ALL-TIME HIGH OF 1 041.
+WITH THIS INCREASE IN BUSINESS, LIABILITY NOW STANDS AT $1 774 MILLION AND IN THE FAIRLY NEAR FUTURE WE MAY HAVE TO SEEK THIS COUNCIL'S AGREEMENT TO AN INCREASE IN THE GOVERNMENT'S GUARANTEE SO AS TO ALLOW ADEQUATE ROOM FOR FURTHER GROWTH, + HE SAID.
IN THE LAST FINANCIAL YEAR, THE CORPORATION REQUIRED NEARLY $7 MILLION TO MEET AND TO PROVIDE FOR CLAIMS, REPRESENTING A LITTLE OVER 50 PER CENT OF GROSS PREMIUM INCOME, COMPARED WITH $6.5 MILLION IN THE PREVIOUS YEAR.
MR. JEAFFRESON NOTED HOWEVER THAT RISKS WERE INHERENT IN THE BUSINESS OF INSURANCE.
+IN EXPORT CREDIT INSURANCE, CREDIT RISKS AND DANGERS TEND TO INCREASE IN ANY PERIOD OF RAPID GROWTH IN EXPORTS. BUT IF THE CORPORATION COULD MAINTAIN CLAIMS AT A LEVEL OF ABOUT HALF OF PREMIUM INCOME, I THINK IT WOULD BE DOING VERY WELL, HE SAID.
THE CORPORATION'S ANNUAL REPORT ALSO SHOWED THAT CONSISTENT WITH THE CHARACTERISTICS OF HONG KONG'S DOMESTIC EXPORTS, CLOTHING WAS BY FAR THE MOST SIGNIFICANT PRODUCT THE CORPORATION COVERED, IN TERMS OF VALUE REPRESENTING 39 PER CENT OF EXPORTS INSURED,
THE UNITED KINGDOM CONTINUED TO BE THE LARGEST MARKET COVERED WITH 34 PER CENT OF THE TOTAL, AND EXPORTS TO THE EEC ACCOUNTED FOR NEARLY 60 PER CENT OF EXPORTS INSURED BY THE CORPORATION.
+THERE IS STILL SCOPE FOR THE CORPORATION TO INCREASE ITS BUSINESS AND TO IMPROVE ITS SPREAD OF EXPORT MARKETS, BUYERS AND PRODUCTS FROM HONG KONG, HE ADDED.
ESTABLISHED IN 1966, THE HONG KONG EXPORT CREDIT INSURANCE CORPORATION IS CHARGED WITH RESPONSIBILITY FOR CARRYING OUT THE FUNCTIONS OF HONG KONG'S OFFICIAL EXPORT CREDIT INSURER, OPERATING ON A COMMERCIAL BASIS.
/IT HAS