SINGAPORE (July 30): United Overseas Insurance reported a 21.2% rise in 2Q earnings ended June to $8.4 million from a year ago.
This brings 1H19 earnings to $19.8 million, 73.4% higher than a year ago,
In 2Q19, gross premium increased 3.6% to $30.6 million. Net earned premium fell 6.6% to $9.6 million while net claims incurred incurred increased 73.2% to $3.5 million.
The group also saw net commission income of $0.3 million compared to net commission expenses of $0.3 million.
After deducting management expenses, 2Q19 underwriting profit came in 35.9% lower at $3.0 million.
However, profit before tax increased 23.3% to $10.0 million after non-underwriting income more than doubled to $7.0 million.
In its outlook statement, UOI says intense competition in the general insurance market which has led to severe premium erosion and negative underwriting results will likely persist.
This, combining with deepening economic slowdown will render it highly challenging to achieve meaningful growth.
Claims experience could deteriorate in light of worsening weather conditions resulting from climate change.
UOI says it remains confident of delivering underwriting profit given its prudent underwriting practices, bancassurance arrangements and distribution channels.
In view of global uncertainties, the company remains cautious in its investment activities.
Shares in UOI closed at $7.10 on Tuesday.
