UOI full-year profit up 10.3% to S$26.6m

UNITED Overseas Insurance (UOI) U13 : U13 0%, the general insurance arm of UOB, saw net profit go up 10.3 per cent to S$26.6 million for the full-year ended Dec 31, 2021.

This was buoyed by an increase in non-underwriting income, which grew 42 per cent to S$12 million, as compared to S$8.5 million in the corresponding period last year, due to unrealised gains from revaluation of investment property, UOI said in a bourse filing on Wednesday (Feb 9).

UOI's directors are recommending the payment of a final dividend of 8.5 cents per share and a special dividend of 8 cents per share for the financial year. These are expected to be paid out on May 20, 2022, if approved at the forthcoming annual general meeting.

Together with the interim dividend of 8.5 cents per shared paid on Aug 23 last year, the total dividend for FY2021 would be 25 cents per share.

Underwriting profit for the year fell 1.4 per cent to S$20.8 million. While UOI logged higher net commission income due to higher profit commission recoverable from reinsurers in the current year, net claims incurred and management expenses went up. The latter rose 0.4 per cent or S$14.6 million due to higher staff cost as the government's support measures tapered down.

UOI's earnings per share stood at 43.48 cents for FY2021. Net asset value per share stood at S$7.33.

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The company said it would further develop its insurance intermediary business and invest in digitalisation capabilities, in addition to driving cross-selling initiatives with its parent bank in Singapore and the region.

It recognised the challenging road ahead as the Covid-19 pandemic rages on with new variants. "In light of the imminent challenges, the company will maintain its judicious underwriting prudent so as to achieve sustainable and profitable growth," it said.

The counter closed flat at S$6.75 on Wednesday.