United Overseas Insurance’s profit more than doubles in 9M23
Year-to-date, net earnings reached S$18.3m in September versus the S$8.2m last year.
United Overseas Insurance, a subsidiary of United Overseas Bank, saw its net profits after tax skyrocket 123.2% to S$18.3m in the nine months to September.
Insurance revenue rose by S$5.0m, a 7.9% increase, reaching S$68.4m. This growth was primarily driven by an increase in contractual service margin and the recovery of insurance acquisition cash flows.
Insurance service expenses also increased by S$5.8m, a 14.5% rise, totalling S$45.9m. This increase was mainly due to higher losses on onerous contracts and increased software and manpower costs.
Net expenses from reinsurance contracts decreased by S$2.4m, an 18.8% reduction, down to S$10.4m, attributable to higher claims recovery from outward treaty agreements.
As a result, the net insurance financial result increased by 15.8% to S$11.7m.
Non-underwriting income stood at S$9.5m, compared to S$0.1m in the corresponding period last year, primarily due to higher interest income and dividends received.
Overall, profit before tax increased significantly by S$11.0m, a 107.8% rise, reaching S$21.2m.
Other comprehensive losses, net of tax, decreased by S$31.6m to S$1.0m when compared to the corresponding period last year.