United Overseas Insurance profits surge 55% YoY FY’23

Earnings per share during the year was 47.85 Singaporean cents.

United Overseas Insurance’s (UOI) insurance revenue slightly fell to S$94.5m, which was partially offset by a decrease in insurance service expenses (S$39.3m) in 2023.

The narrowing of service expense was primarily due to lower incurred claims resulting in a reduction in claims reserves. However, net expenses from reinsurance contracts rose by S$9.6m to S$32.2m due to lower claims recovery.

On the non-underwriting side, income amounted to S$10.7m compared to S$0.5m in the corresponding period last year, driven by favourable gains in both dividend and interest income from investments. 

Additionally, other comprehensive income, net of tax, recorded an unrealised profit of S$8.2m, contrasting with an unrealised loss of S$30.1m in the same period last year.

This favourable performance was largely attributed to resilient global growth, decreases in interest rates contributing to valuation gains, and positive returns in most asset classes.

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Overall, profit after tax climbed 54.5% year-on-year (YoY) to S$29.3b last year.

Looking ahead, the local insurance market remains saturated and highly competitive, but there are growth opportunities for companies with agile strategies and strong propositions. 

The company plans to leverage cross-selling initiatives with the parent bank, develop its insurance intermediary business progressively, enhance technological capabilities, and maintain a customer-centric focus to position itself for further growth.

However, the investment climate is expected to be challenging due to heightened geopolitical tensions and market volatility. 

Therefore, the UOI intends to remain prudent in its calibration of strategic asset allocation and investment strategies.

Earnings per share was valued at 47.85 Singaporean cents, higher than the 30.96 Singaporean cents in 2022.