HONG KONG, Sept. 28 (Xinhua) -- Driven by robust economic conditions, the total gross premiums of Hong Kong's insurance industry grew 13.7 percent to 156 billion Hong Kong dollars (20.12billion U.S. dollars) last year, the office of Hong Kong Commissioner of Insurance said here Friday.

The figure represented 10.6 percent of Hong Kong's Gross Domestic Product, compared with 9.9 percent in 2005, the office said in a press release.

Despite the strong out-turn, general insurance business registered only a modest rise in gross premiums of 1.8 percent to 22.96 billion Hong Kong dollars (2.96 billion U.S. dollars). Net premiums grew 3.6 percent, attributable to a higher retention ratio of 70.6 percent compared with 69.4 percent in 2005.

The rise in gross premiums was largely driven by accident and health business that surged 14.8 percent to 5.36 billion Hong Kong dollars (691.39 million U.S. dollars), making up 23 percent of the total.

According to the office, the overall underwriting performance of general insurance business contracted from 2.5 billion Hong Kong dollars (322.48 million U.S. dollars) in 2005 to 2.07 billion Hong Kong dollars (267.01 million U.S. dollars) last year due to deteriorated claims experience as well as higher management expenses. Net claims incurred ratio was 51 percent compared with 48.9 percent in 2005.