UOI net profit up 70.2% in H1 due to favourable investment markets
United Overseas Investment Limited (UOI) posted $12.15m net profit.
The profit after tax of UOI grew to $12.15m in the first half (H1) of 2023 from $7.14m in H1 2022 amidst improved investment markets.
In a financial statement, UOI said insurance service revenue grew by $6.8m or 17.5% whilst expenses went up to $27.1m from $22.7m largely on the back of lower commission income and higher management expenses.
Net expenses from reinsurance contracts went up by $5.5m. The insurance service result declined 27.8% to $8.3m. Non-underwriting income recorded a profit of $6.3m as compared to a loss of $3.2m in the corresponding period last year due to a rise in both dividend and interest income from investments and the overall performance of the investment portfolio.
Other comprehensive income, net of tax recorded an unrealised profit of $1.1m as compared to an unrealised loss of $23.4m in the corresponding period last year.
Overall, total comprehensive income was a profit of $13.2m instead of a loss of $16.2m attained in the corresponding period last year due mainly to the reasons mentioned earlier.
In its outlook, UOI said the insurance markets will continue to face stiff competition and potential claims from business conditions. To face this, the company said it will “maintain its prudent stance and press ahead with cross-selling initiatives with the parent bank, enhancing digital capabilities and developing its insurance intermediary business.”