SINGAPORE (July 18): United Overseas Insurance reported 2Q earnings rose 62.7% to $8.2 million from a year ago.
Profit before tax increased to $9.6 million due to higher profit from both underwriting and non-underwriting income.
UOI says gross premium decreased by $0.8 million or 2.8% to $29.8million. Net earned premium decreased by $0.4 million or 3.8% in 2Q17 as compared to 2Q16.
Net claims incurred decreased by $1.4 million or 38.4%.
Net commission was an expense of $0.1 million.
Consequently, underwriting profit in 2Q17 increased by $1.0 million or 26.1% to $4.7 million.
The company recorded a higher non-underwriting income of $5.0 million in 2Q17 due mainly to gains from the sale of investments and no impairment losses on available-for-sale investments in the current quarter.
Looking ahead, UOI says intense competition within the local and regional markets resulting in underpricing of risks continue to prevail.
“The pressure on premium growth and underwriting margins caused by such premium rate erosion remains unabated. However, the bancassurance initiatives that have been put in place are expected to ameliorate to some extent such situation,” it adds.
Shares in UOI closed 2 cents lower at $5.48 on Tuesday.
