SINGAPORE (Oct 20): United Overseas Insurance (UOI) says earnings for 3Q17 ended Sept rose 38.6% to $5.4 million from a year ago due to higher profit from non-underwriting income.
Gross premium decreased by $0.7 million or 3% to $23.7 million. Net earned premium decreased by $0.5 million or 4.3% in 3Q17 compared to 3Q16. Net claims incurred increased by $1.3 million or 34.1% to $5.1 million. Net commission was an expense of $0.3 million. Consequently, underwriting profit in 3Q17 decreased by $1.6 million or 42.7% to $2.1 million.
However, profit before tax increased to $6.5 million due to higher profit from non-underwriting income. This was due to higher realised net fair value gains on financial derivatives.
No dividend has been declared for the quarter.
In its outlook, UOI says it is premature to be sanguine despite recent indications of improving economy due to increased exports. In addition, the unpredictability of likely worsening threats of climate change and terrorism will render the operating environment even more challenging.
Shares of UOI closed 3 cents higher at $5.83.
