UOI Q1 profit before tax dips 3% to S$7.8 million on lower non-underwriting income 

[SINGAPORE] United Overseas Insurance (UOI), the general insurance arm of UOB, posted a profit before tax of S$7.8 million for the first quarter of FY2025, down 3 per cent from the S$8 million logged in the previous corresponding period.

The fall was attributed to lower non-underwriting income, which dropped 12 per cent to S$3.7 million from S$4.2 million in the first quarter of 2024. This was due to a reduction in interest income from the rebalancing of its bond portfolio and lower dividends received as a result of lower dividend declarations from investments. 

However, the lower profit before tax was partly offset by stable underwriting results, said UOI on Monday (Apr 28). 

Its insurance revenue climbed 15 per cent to S$27.3 million from S$23.7 million previously, driven by higher earnings from policies underwritten in prior years. New and renewal premiums remained stable compared year on year. 

The group’s net insurance service and financial results were up 8 per cent at S$4.1 million from S$3.8 million in Q1 of the year prior. UOI said this was due to stable insurance revenue and prudent underwriting. 

Total comprehensive income after tax surged 385 per cent to S$12.6 million from S$2.6 million in Q1 FY2024 as a result of stable net profits and significant marked-to-market gains on equity investments, UOI said. 

For the quarter, shareholders’ equity grew 8.2 per cent on the year to S$481.4 million from S$444.9 million on stable net profits and marked-to-market gains on equity investments. Return on average shareholders’ equity stood at 5.6 per cent, 0.6 percentage point lower than the 6.2 per cent of Q1 2024. 

UOI’s total assets increased to S$621.8 million as at the end of Q1 FY2025, up 5.5 per cent from S$589.5 million. Return on average total assets fell 0.3 percentage point to 4.3 per cent from 4.6 per cent in the year-ago period. 

The counter closed on Monday unchanged at S$7.75, before the news.