U.S.-based Fusion Trade expands business

An independent distributor of electronic components, Fusion Trade, announced its business expansion in Hong Kong. The company procures, warehouses and distributes electronic components to original equipment and contract manufacturers (OEMs and CMs) worldwide.

Established in the United States in 2001, Fusion Trade set up in Hong Kong in 2007 with the establishment of its regional warehouse. This year, the company is increasing its investment in the city by more than doubling the size of this “Quality Hub,” which is used for inspection, logistics, testing and warehousing. The company’s expansion in Hong Kong also includes the opening of an Anti-Counterfeit Analysis and Screening Lab.

The General Manager (Asia) of Fusion Trade, Jeffrey Hong, said such attributes as a business-friendly environment, central location in the region and local pool of talent with a business mindset are the key attractions for the company’s continued investment in Hong Kong.

“We are growing our business and presence across Asian markets and our expansion in Hong Kong is to facilitate intra-Asian shipments as well as exports to other parts of the world, particularly Europe and the U.S.,” Mr. Hong said.

Charles Ng, Associate Director-General of Investment Promotion of Invest Hong Kong, welcomed Fusion Trade’s further investment in Hong Kong. “This not only enriches the portfolio of Hong Kong’s electronics industry but also provides an opportunity to equip local personnel with training on the latest industry standards,” Mr. Ng said. “This stands to benefit the local electronics industry by helping to improve its overall standards. We wish Fusion Trade's business every success in the future and look forward to its further expansion in our city.”

Mr. Ng added that Hong Kong is a major center for the Asian electronics industry. It offers a solid research base, rigorous intellectual-property protection, excellent communications and transportation networks, and easy access to a large and low-cost manufacturing base in mainland China. “These are the advantages of Hong Kong which facilitate overseas companies to expand their businesses into Asian markets, especially those of mainland China,” he said.

Founded in 2001, Fusion Trade, headquartered in the U.S. with operations in Hong Kong, Amsterdam and Singapore, supports technology manufacturing companies worldwide with all types of active and passive components.

Invest Hong Kong is the department of the Hong Kong Special Administrative Region Government that is responsible for foreign direct investment, supporting overseas, Mainland and Taiwanese businesses as they set up and expand in Hong Kong.

Underwriting performance improves in 2009

Overall underwriting performance registered improvement in 2009, according to provisional statistics released by the Office of the Commissioner of Insurance (OCI), with a US$282.05 million profit in 2009, compared with a US$192.3 million profit a year earlier.

In 2009, gross and net premiums for general insurance business also recorded growth, of 5.7% to US$3.66 billion and 7.1% to US$2.62 billion, respectively, compared with 2008.  

Regarding direct business, gross and net premiums gained 5.3% to US$2.91 billion and 6.3% to US$2.17 billion, respectively, in 2009. Accident and health business (comprising medical business) continued to grow, with gross and net premiums reaching US$948.71 million and US$794.87 million, respectively. Construction-related employees' compensation business was also boosted, with gross and net premiums increasing to US$230.76 million and US$192.3 million, respectively.  The overall business growth was nonetheless offset by the decline in ships business and goods in transit business.  The former recorded a fall in gross and net premiums to US$123.46 million and US$80 million, respectively, while for the latter the gross and net premiums contracted to US$108.84 million and US$68.97 million, respectively.

The underwriting profit of direct business grew from US$66.53 million to US$179.48 million in 2009 as a result of favorable claims experience.  

As for reinsurance inward business, gross and net premiums increased 7.2% to US$743.58 million and 10.9% to US$448.71 million, respectively, in 2009.  Nevertheless, the underwriting profit fell from US$126.92 million to US$99.87 million due to adverse claims experience.

Total revenue premiums of long-term, in-force business were US$20.14 billion in 2009, down 5.4% year-on-year.

Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 11.3% to US$11.69 billion whereas Individual Life and Annuity (Linked) business plunged 33.4% to US$4.83 billion.  Contributions of Retirement Scheme business grew by 2.2% to US$3.24 billion.  Total insurance benefits paid to individuals decreased by 0.1% to US$8.07 billion.

New office premiums (excluding Retirement Scheme business) of long-term business for 2009 decreased 23.3% to US$5.96 billion compared with 2008, mainly due to a reduction in Individual Life and Annuity (Linked) business premiums by 58.3% to US$1.93 billion.  This notwithstanding, new office premiums for Individual Life and Annuity (Non-Linked) business increased by 28.7% to US$3.97 billion.

In respect of new policies issued to Mainland visitors, office premiums amounted to US$384.61 million, representing 6.4% of the total new office premiums of US$5.93 billion for individual business in 2009.

A summary of provisional statistics of the Hong Kong insurance business for 2009 can be found on OCI’s Web site, [www.oci.gov.hk].