SINGAPORE (Feb 7): United Overseas Insurance saw 4Q earnings more than double to $7.1 million from a year ago, thanks to premium growth, higher retention and lower expenses.
During the quarter ended Dec, gross premium grew 3.1% to $21.5 million, while net earned premium grew 10% to $11.4 million.
Net claims incurred in the quarter improved by 24.6% to $2.4 million.
Net commission income fell 12.2% to $2.7 million.
Management expenses also fell 5.5% to $3 million.
Correspondingly, underwriting profit in 4Q rose 22.9% to $8.7 million.
UOI recorded a non-underwriting loss of $0.5 million due to losses arising from disposal of investments, narrowing the loss recorded in the year ago period.
For the full year, net profit rose 3.4% to $23.1 million, while gross premium rose 2% to $106.9 million, due to organic growth and increase in new business.
Higher net earned premium and lower net claims incurred as a result of portfolio pruning meant that underwriting profit jumped 22% to a record of $24.5 million.
The board has declared a final dividend of 12 cents per share and a special dividend of 2 cents per share to be paid in May.
Together with the interim dividend of 3 cents per share paid in Aug 2016, the total dividend for FY16 would be 17 cents per share, similar to FY15.
In its outlook, UOI highlighted the many global uncertainties that Singapore and other regional economies continue to face.
"Amid a highly mature and competitive local market for general insurance, the company will continue to strive for premium and profit growth by stepping up innovative initiatives in bancassurance, developing new business and enhancing application of digitalisation in its operation."
Shares of UOI closed 1 cent higher at $4.81 before the results were announced.
