UNITED Overseas Insurance (UOI) reported an 18.8 per cent growth in its earnings for the first half of 2024 to S$14.2 million, from S$11.9 million in the first half of 2023.
In a bourse filing on Wednesday (Jul 24), the insurer reported a 9.8 per cent rise in revenue for the first half to S$51 million from S$46.4 million in H1 of the year before. It said that this was driven mainly by the collaborative sales efforts with its parent bank UOB and intermediaries.
Insurance service expenses rose 9 per cent to S$31 million in H1 2024 from S$28.5 million in H1 2023 as a result of higher amortisation of acquisition costs and management expenses.
Net expenses from reinsurance also rose – rising 14.8 per cent to S$11.3 million in H1 2024 from S$9.9 million in H1 2023.
Non-underwriting income grew 25.1 per cent to S$7.8 million in H1 2024 from S$6.3 million in H1 2023 on the back of higher dividend and interest income, as well as fair-value gains from investments.
UOI recorded an unrealised loss of S$2.1 million in other comprehensive income, net of tax, due to mark-to-market losses on the bond portfolio.
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The directors have declared an interim one-tier tax-exempt dividend of S$0.085 cents a share, totalling S$5.2 million. The books will be closed on Aug 2, and dividends paid out in cash on Aug 15.
Despite the Singapore insurance market remaining saturated and competitive, UOI still sees opportunities, given that businesses recognise the need for insurance coverage. The insurer will continue its technology integration and cooperation with UOB for further growth.
UOI forecasts fluctuations in the mark-to-market valuations of its investment assets as a result of market volatility and geopolitical tensions. The insurer will continue to take a prudent stance in optimising profits and diversifying risks.
The shares of UOI closed down 1.6 per cent or S$0.12 to S$7.35 on Wednesday.
