UNITED Overseas Insurance (UOI), the general insurance arm of UOB, reported a net profit of S$17.3 million for the second half of the 2023 financial year.
This is down 6 per cent from a net profit of S$18.5 million for the same period a year ago.
Insurance revenue fell 14 per cent to S$48 million for the second half of FY2023 ended Dec 31, from S$56.1 million in the same period a year ago. This is due to the lower release of contractual service margin for services provided.
Insurance service expenses dropped 59 per cent year on year to S$10.8 million, mainly due to a reduction in claims reserves from lower incurred claims.
Net expenses from reinsurance contracts increased by 112 per cent year on year to S$22.3 million on lower claims recovery. Consequently, this meant the net insurance financial result fell 23 per cent year on year to S$14.7 million.
Non-underwriting income rose by 20 per cent year on year to S$4.4 million due to favourable gains in both dividend and interest income from investments.
Other comprehensive income amounted to S$7.2 million after tax of unrealised profit, compared against an unrealised loss of S$6.7 million in the corresponding period last year.
This was mainly attributed to favourable investment markets, supported by lower interest rates that have contributed to market value gains and good returns in most asset classes.
Total comprehensive income for H2 2023 came in at a profit of S$24.5 million after tax, up from a profit of S$11.8 million in the same period last year.
Earnings per share stood at 56.63 Singapore cents for the period, down from 60.46 cents a year ago.
A final dividend of 8.5 Singapore cents per share and a special dividend of four cents per share were declared for the full year, both unchanged from the year before.
For the full year ended Dec 31, 2023, net profit after tax was up 55 per cent to S$29.3 million, while insurance revenue was down marginally by 0.5 per cent to S$94.4 million.
In a bourse filing on Tuesday (Feb 20), UOI said: “The local insurance market is saturated and highly competitive but continues to present growth opportunities for companies that have agile strategies and strong propositions.”
UOI shares closed flat at S$6.13 on Tuesday, before the results release.
