UOI net profit down 36.9% in FY2022, gross premium and underwriting profit below pre-Covid levels

UNITED Overseas Insurance (UOI), the general insurance arm of UOB, on Tuesday (Feb 7) posted a 36.9 per cent drop in net profit to S$16.7 million for the financial year ended Dec 31, 2022.

This follows a 19.4 per cent decrease in net profit for the second half of FY2022 to S$12.1 million, according to its financial statement.

Gross premium for the full year rose 1.6 per cent to S$99 million on the back of employers’ liability, marine classes of insurance and inward reinsurance, UOI said. H2 gross premium also grew at the same rate of 1.6 per cent to S$40.8 million.

Underwriting profit grew 2 per cent to S$21.2 million for the full year, while H2 saw a 2.3 per cent decrease.

Both gross premium and underwriting profit are below pre-Covid-19 levels.

Non-underwriting income plunged 94.9 per cent to S$618,000 for the full year, while H2 posted a 39.1 per cent drop to S$3.9 million.

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Total assets shrank 5.5 per cent to S$619.9 million for FY2022.

A final dividend of 8.5 cents per share and a special dividend of 4 cents per share was declared. Combined with the interim dividend of 8.5 cents paid in August, this brings the total dividend for FY2022 to 21 cents per share.

Net asset value per share was S$6.86 in FY2022, compared with S$7.33 in the year before.

Earnings per share was 27.4 cents, down from 43.5 cents in FY2021.

UOI said looking ahead, recessionary pressures are likely to build up, with inflation increasing the risk of an economic slowdown.

“Continual investments in human capital, technology and digitalisation will drive productivity and growth both in Singapore and overseas. Leveraging the parent bank’s growing presence in Asean, the company expects its regional contributions to increase,” UOI said.

It also said investment markets continue to face many uncertainties stemming from geopolitical tensions and potential recessionary concerns, adding that the company will calibrate its investment strategies accordingly.

UOI shares closed at S$6.50 on Tuesday, S$0.07 or 1.1 per cent higher.