British-based insurer Eagle Star Insurance Group said life and general insurance business in Hong Kong last year rose more than 40 per cent, but warned conditions next year would be more challenging.
It said life insurance premiums jumped 43 per cent in 1997 to $261 million, while the size of its sales force rose 25 per cent to 840.
General insurance premiums for the year were $500 million, up 48 per cent on 1996.
General insurance general manager Andrew Chow Yiu-ming said: 'New car sales have declined, the property market has slumped and companies have started laying people off.
'All of these factors reduce the need for general insurance on motor cars, fire protection and employee compensation.' While admitting 1998 would be a tough year, he said Eagle Star would strive to maintain its 40 per cent growth target this year by expanding its product range and sales force.
Sales director Denny Chan Yung-leung said the company would like to increase its agency force from 840 to 1,200 this year.