Hong Kong Insurance 2Q26 Life sales: Headline growth holds, but mix quality softens

Hong Kong's life insurance industry delivered another solid quarter in 2Q26, despite a high base last year. APE reached HK$49.2B, 3% oya or US$6.3B. Beneath the resilient headline growth, distribution trends are shifting. Bancassurance is strengthening, while agency and broker channels are softening, likely reflecting tighter scrutiny of upfront commissions and a more rigorous know-your-client process, particularly for offshore sales. This shift is also evident in product mix. 2Q26 appears to have been a record quarter for single payment life policies, with volumes reaching HK$94.1B, up 161% oya, versus the HK$33.2B quarterly average since 2023. AIA and FWD saw single premium sales rise to HK$9.7B, up 108% oya, and HK$8.9B, up 101% oya, respectively. We see this as some deterioration in product mix, although continued growth in in-force premiums across major players remains a key offset. Renewal premiums grew 45% oya to HK$483.6B during the period, pointing to limited lapse risk across