UOI profit up 2.4% for Q1 with non-underwriting business back in black

UNITED Overseas Insurance (UOI), the general insurance arm of UOB, posted a 2.4 per cent increase in net profit to S$4.7 million for the first three months of 2023, up from S$4.6 million in the previous corresponding period.

Although net underwriting profit fell 38 per cent to S$3.5 million, this was more than offset by a rise in non-underwriting income to S$2.2 million, which turned profitable after the group recorded a loss of S$0.1 million in the corresponding period a year ago.

The increase in non-underwriting income was due to higher interest and dividends received, and lower losses from investments, said UOI on Thursday (Apr 20).

The drag on net underwriting profit came mainly from lower net premium written, which fell 7.5 per cent, and net earned premium, which fell 6.7 per cent. Gross premium dipped marginally by 1.1 per cent as all classes of insurance experienced a decline, except for other accident insurance. 

In underwriting expenses, net claims incurred decreased by 12.4 per cent as lower claims were noted in UOI’s property, employers’ liability and reinsurance lines of business. 

Management expenses increased 4.9 per cent to S$3.9 million due to higher software maintenance expenses arising from UOI’s digitalisation initiatives. 

The group recorded net commission expenses of S$30,000, as opposed to the net commission income of S$1.7 million the previous year. 

While total assets dipped 2.8 per cent to S$627.3 million, return on assets rose 0.2 percentage point to 3 per cent. 

Net asset value per share was S$6.98 for the first quarter of this year, down 2.5 per cent from S$7.16 in the corresponding period a year ago. 

SEE ALSO

Wee Cho Yaw to step down from UOI board, Wee Ee Cheong to succeed as chairman

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

UOI 9M 2022 net profit falls 38.7% 

Shares of UOI traded flat at S$6.36 as at 9.30 am on Friday.