UOI’s H1 net profit jumps 70% to S$12.2 million
Janice Lim
THE general insurance arm of UOB, United Overseas Insurance (UOI), reported a net profit after tax of S$12.2 million for the first half of the 2023 financial year, up 70.2 per cent from a net profit after tax of S$7.1 million for the same period a year ago.
Insurance revenue increased by 17.5 per cent to S$45.4 million for the first half of FY2023 ended Jun 30, as compared with S$38.7 million in the same period a year ago.
However, higher insurance expenses due to lower commission income, higher management expenses, and higher net expenses from reinsurance contracts meant that the overall income from insurance service declined by 27.8 per cent to S$8.3 million, compared with S$11.5 million last year.
Non-underwriting income recorded a profit of S$6.3 million, reversing a loss of S$3.2 million in the corresponding period last year, due to increase in both dividend and interest income from investments and overall performance of the investment portfolio.
Other comprehensive income amounted to about S$1.1 million after tax of unrealised profit, compared against an unrealised loss of S$23.4 million in the corresponding period last year. This was largely attributed to favourable investment markets.
Total comprehensive income for H1 2023 came in at a profit of S$13.2 million, a reversal from a loss of S$16.2 million in the same period last year.
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Earnings per share came in at 39.74 Singapore cents for the period, up from 23.35 cents a year ago.
UOI said that insurance markets continue to face stiff competition and potential claims arising from adverse business conditions.
“The company will maintain its prudent stance and press ahead with cross-selling initiatives with the parent bank, enhancing digital capabilities and developing its insurance intermediary business. Global equity and fixed income markets remained volatile amidst the many uncertainties arising particularly from inflationary fears, potential recessionary risks and geo-political tensions. The company will continue to position the investment portfolio for long term sustainable growth,” it added.
Shares of UOI closed flat at S$6.11 on Tuesday.
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