SINGAPORE (April 19): United Overseas Insurance saw 1Q earnings fall marginally by 0.6% to $7.0 million.
For the first quarter ended March 31, gross premium declined 4.9% to $28.9 million, while net earned premium fell 9.2% to $10.8 million.
In a filing to SGX, United Overseas Insurance says this was largely attributable to timing difference in premium declarations. It adds that there was “no apparent significant loss in business”.
Net claims incurred in the quarter fell 53.8% to $1.1 million, from $2.4 million a year ago.
This was due mainly to improvement in claims experience in non-marine classes.
Net commission income in 1Q fell 67.8% to $0.7 million, from $2.3 million a year ago, due to higher reinsurance commission recoveries from reinsurers in 1Q16.
Consequently, underwriting profit fell 17.2% to $7.0 million, from $8.4 million a year ago.
Cash and cash equivalents stood at $63.6 million as at March 31, 2017.
The company says it expects to continue to face challenges ahead due to economic uncertainties and intensifying competition in the local insurance market.
However, it says it expects performance to remain “satisfactory”.
“On the investment income front, volatility and uncertainty will continue to characterise most of the investment markets,” it adds. “The restructuring of the investment portfolio is expected to yield positive results.”
Shares of United Overseas Insurance closed 4 cents lower at $5.19 on Wednesday.
