UOI's earnings fall 42% for Q2 amid lower business activities during pandemic

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MAINBOARD-LISTED United Overseas Insurance (UOI), the general insurance arm of United Overseas Bank, saw its net profit shrink by 42 per cent to S$4.9 million for the second quarter ended June 30, 2020, from S$8.4 million for the corresponding period last year. Read more at The Business Times.

For the first half of this year, net profit dropped 56.7 per cent to S$8.6 million while gross premium ticked down by 3.2 per cent to S$56.6 million, mainly due to lower business activities caused by the novel coronavirus pandemic.Management expenses decreased by 4.4 per cent to S$6.5 million, given the financial support for employers under the government’s Jobs Support Scheme and lower call-centre expenses during Singapore’s “circuit-breaker” period.

Overall, UOI sank into a total comprehensive loss of nearly S$3 million for H1 2020, versus a total comprehensive income of S$36.2 million a year ago, due mainly to “unfavourable” investment market conditions. “Claims experience may worsen given the prevailing adverse business conditions and severe weather conditions brought about by climate change,” UOI said.

 

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