XN000022-1995-12-14 — Page 22

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Of these policies, non-linked business accounted for 71 per cent of total office premiums while linked business accounted for 29 per cent.

Whole life insurance remained the main type of non-linked policy sold, accounting for 48 per cent of total office premiums for new individual policies.

"As a result of sustained growth in new business, individual business in force at per the end of 1994 continued to grow with office premiums in force expanding by 30 cent to $14 billion," Mr Lam explained.

The growth in office premiums of in-force business was mainly attributable to the expansion of whole life policies by 18 per cent to $8.4 billion.

At the end of 1994, the number of individual life policies in force exceeded 2.5 million which covers about 40 per cent of Hong Kong population, compared with 37 per cent at the end of 1993.

Net liabilities for these policies increased by 23 per cent from $21.2 billion to $26 billion in 1994,

On the other hand, office premiums in force for group policies grew by 30 per cent while the number of policies in force increased by nine per cent to 8,327 policies.

"Total number of retirement schemes management policies increased by 22 per cent to 11,057," Mr Lam said.

The amount of contributions also grew by 13 per cent to $4.9 billion, representing 25 per cent of total long term business income. Net liabilities rose slightly by two per cent to $22.3 billion.

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