UOI H1 profit falls 39.1% to S$8.6 million, declares lower dividend of S$0.07 per share

United Overseas Insurance (UOI), the general insurance arm of UOB, posted a 39.1 per cent decline in its net profit for the first half of 2025 to S$8.6 million, from S$14.2 million in the same period in 2024.

In a bourse filing on Tuesday (Jul 29), the insurer reported a 12.2 per cent rise in insurance revenue in H1 to S$57.2 million from S$51 million in the same period the year before. It attributed the increase to “business growth initiatives and increased recognition of revenue from prior periods”.

However, insurance service expenses rose by 28.7 per cent to S$39.9 million as a result of higher gross incurred claims and actuarial claims reserves as well as increases in acquisition and administrative costs.

Net expenses from reinsurance also increased, by 5.3 per cent to S$11.9 million in H1 2025 from S$11.3 million in H1 2024. Consequently, the insurance service result decreased by 38.5 per cent to S$5.3 million.

Non-underwriting income fell 30.6 per cent to S$5.4 million in the latest H1, from S$7.8 million in the same period last year, due to investment losses and foreign exchange movements.

UOI recorded an unrealised gain of S$2.8 million in other comprehensive income, net of tax, as a result of mark-to-market gains on the investment portfolio.

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Overall, the insurer recorded a total comprehensive income of S$11.4 million, a decline of S$0.7 million compared with the same period last year.

The directors have declared an interim one-tier tax-exempt dividend of S$0.07 per share, totalling S$4.3 million. This is lower than the dividend paid out in H1 2024, which amounted to S$0.085 per share, or S$5.2 million in total.

The insurer’s books will be closed on Aug 7, and dividends paid out in cash on Aug 19.

UOI noted that while the local insurance market remains highly saturated and competitive, it is poised for steady growth supported by digital adoption and the rising demand for private insurance solutions.

The insurer said its “continued digital transformation initiatives, synergies with its parent bank and expanding intermediary business lines fuel its growth ambition”.

Meanwhile, it “exercises defensive strategies in preserving capital through diversifying portfolio risk across its asset classes and allocation of funds with two fund managers” in an investment landscape shaped by market volatility, tariff uncertainties, and global geopolitical tensions.

The shares of UOI closed up 0.6 per cent or S$0.05 at S$8.07 on Tuesday.