United Overseas Insurance chalks up 11.1% rise in Q2 net earnings

SINGAPORE - United Overseas Insurance (UOI) has posted an 11.1 per cent rise in second quarter net profit to $7.6 million.

This was despite a 3.4 per cent drop in gross premiums written to $32 million for the three months to June 30.

Net earned premiums increased by 3.2 per cent while net claims incurred fell by 12.1 per cent due to pruning measures.

Consequently, underwriting profit increased by $200,000.

The group recorded a higher non-underwriting gain of $6.5 million.

Annualised earnings per share grew to 49.5 cents from 44.6 cents previously while net asset value per share firmed to $4.85 compared to $4.59 as at Dec 31.

On its prospects, UOI noted that business growth in Singapore will continue to be challenging in view of slower economic growth and intense competition within the general insurance industry.

"Operating costs will likely trend upwards while the unpredictability of climate change will add to the challenges of the operating environment.

"Sustained marketing efforts with new initiatives aiming at widening the scope of services and leveraging on e-commerce supported by the parent bank will ensure continued growth."

UOI expects underwriting results to remain profitable.

However, the outlook for investments is likely be volatile in the light of continuing geopolitical and economic uncertainties, it said.