Its insurance revenue is 14% up to S$79.4 million; other income is 8% higher to S$10.3 million
UNITED Overseas Insurance (UOI) posted a profit before tax of S$22.1 million for the nine months ended Sep 30, down 2 per cent from the S$22.5 million in the corresponding period last year.
The dip came from a drop in net insurance service and financial results, offset by investment returns amid positive market sentiment, said the general insurance arm of UOB on Tuesday (Oct 22).
Net insurance service and financial results in the nine-month period fell 9 per cent to S$11.8 million, from S$13 million the year before, as a result of higher insurance service expenses arising from higher acquisition costs and incurred claims.
But insurance revenue rose 14 per cent to S$79.4 million, largely due to higher release of contractual service margin for services provided in tandem with top-line growth.
Its other income rose 8 per cent to S$10.3 million from a rise in dividend income.
Total comprehensive income after tax rose 63 per cent to $30.1 million, mainly from higher valuations on its equity and bond portfolios amid positive market sentiment and interest-rate cuts.
The insurer noted that its shareholders’ equity grew 8.6 per cent to $459.8 million in the nine-month period, largely the result of better returns from investing activities.
Return on average shareholders’ equity was 5.8 per cent in the nine-month period, down from 6.3 per cent in the same period a year earlier.
Shares of UOI rose 1.7 per cent or S$0.12 to S$7.16 on Tuesday, before the announcement.
