United Overseas Insurance Profits Rise 14.9% YoY in H1 2024
Thanks to a surge in its dividend income on a year-on-year basis.
United Overseas Insurance (UOI) saw its profits climb 14.9% year-on-year (YoY) in the first six months of the year (H1 2024), reaching $10.51m (S$14.2m). Thanks to a surge in dividend income from investments, which increased by 52.3% YoY to $2.44m (S$3.3m).
Insurance service revenue increased by 9.8% YoY, mainly due to collaborative sales efforts with its parent bank and intermediaries.
Insurance service expenses rose to $22.94m (S$31.0m) from $21.09m (S$28.5m), attributed to higher amortisation of acquisition costs and management expenses.
Net expenses from reinsurance contracts increased by $1.11m (S$1.5m). As a result, the insurance service result grew by 6.5% YoY to $6.36m (S$8.6m).
Non-underwriting income increased by $1.18m (S$1.6m) due to higher dividend and interest income and net fair value gains from investments. The company’s earnings per share stood at $34.34 (S$46.41), up 18.8% YoY.
“While the local insurance markets continue to remain highly saturated and competitive, opportunities abound as businesses recognise the need for comprehensive insurance coverage and insurers innovate and offer bespoke risk management solutions,” UOI said in a local bourse filing.
The company continues to focus on technology integration, customer centricity, and business synergies with the parent bank for growth.
“Market volatility and geo-political tensions may result in fluctuations in the mark-to-market valuation of our investment assets. In the execution of its investment strategies, the Company continues to take a prudent stance to optimise profits and diversify risk,” it added.
($1.00 = S$1.34)