UOI posts 123.2% rise in 9-month net profit to S$18.3 million

UNITED Overseas Insurance (UOI) reported a 123.2 per cent rise in net profit after tax to S$18.3 million for the nine months ended Sep 30, up from S$8.2 million in the same period a year prior.

This was due primarily to S$9.5 million in non-underwriting income for the period, compared to S$0.1 million previously.

UOI is the general insurance arm of UOB.

Insurance revenue for the nine months ended Sep 30 grew 7.9 per cent to S$68.4 million, from S$63.4 million in the corresponding period a year ago.

This was “mainly due to higher contractual service margin and recovery of insurance acquisition cash flows”, UOI said in a bourse filing on Tuesday (Oct 24).

However, higher losses on “onerous contracts and higher software and manpower costs” sent insurance service expenses up by 14.5 per cent to S$45.9 million, from S$40.1 million previously.

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This was partially offset by an 18.8 per cent decrease in net expenses from reinsurance contracts to S$10.4 million for the period, from S$12.8 million a year prior.

Total comprehensive income for 9M 2023 came in at S$17.3 million, reversing a S$24.4 million loss in the corresponding period a year ago.

Shares of UOI closed flat at S$6.05 on Tuesday, before the announcement.