For its core insurance business, mainboard-listed United Overseas Insurance (UOI) has reported a net profit of $32.3 million for FY2025 ended Dec 31. This is around $2.5 million or 8% higher than FY2024’s $29.8 million.
Revenue for its core insurance business saw an increase of around 2% to $115.4 million, driven by retail and reinsurance which was supported by growth across key business lines, new partnerships and transformation initiatives. Mostly due to higher incurred claims and transformation expenses, insurance service expenses rose y-o-y by 14.7% from $64 million to $73.4 million. Including a $3.4 million or 11% dip in net expenses from reinsurance contracts (attributed to higher claim recoveries and increased net retention), the net insurance service and financial result decreased by 21% to $15.3 million.
However, non-underwriting income increased around 15% y-o-y to $16.6 million attributable to higher dividend income through proactive management underpinned by strong investment performance. Combined with a tax refund, net profit for the insurance business increased despite the weaker insurance service net result.
Other comprehensive income, mainly comprising valuation gains from unsold investments, was $35.2 million, a y-o-y increase of 278%. UOI attributes the stronger performance to “resilient” financial markets underpinned by a “favourable” global economic climate and receding inflation. Total comprehensive income, comprising net profit from core operations and other comprehensive income, was $67.5 million, a y-o-y increase of approximately 73%.
It may be of interest to note that UOI’s investments include more than 4.27 million shares of Tiger Balm owner Har Par Corporation. In 2025, Har Par’s share price closed the year at $15.68, a gain of $4.53 or 40.6% from end-2024.
Balance sheet wise, UOI had total assets of $652 million vs $129 million in liabilities with net asset value was $8.55, a y-o-y increase of around 12%. The company’s year-end cash position stood at around $57 million, a decrease of around $41 million from end-2024. The difference was mainly due to an increase in net cash used for investing activities.
See also: ComfortDelGro’s subsidiary Vicom reports 45.1% y-o-y growth in earnings for FY2025 of $42.5 mil
In a statement, UOI says that continuing momentum in key ASEAN markets from 2025, coupled with rising risk awareness and accelerating digital adoptions, will provide “significant” growth opportunities for UOI.
“The rise of middle-income consumers and ongoing urbanisation are driving sustained growth in retail insurance demand, while rapid digitalisation and the increasing use of digital payments enable more scalable and efficient distribution models,” notes UOI. “In parallel, infrastructure development and manufacturing activity continue to generate strong demand from commercial and SME segments.”
UOI adds that it will strengthen collaboration with parent UOB across ASEAN and continue to invest in technology, talent and capabilities to position UOI for sustainable long-term growth.
See also: United Hampshire US REIT reports 8.1% y-o-y higher DPU of 4.39 US cents for FY2025
Following FY2025’s result announcement, UOI is proposing a final dividend of 19.5 cents per share for the financial year, which is five cents higher than FY2024’s combined final and special dividends of 14.5 cents. Together with the interim dividend of seven cents per share paid in August 2025, the total dividend for FY2025 will be 26.5 cents per share, or 3.5 cents higher than FY2024. If approved, the final dividend will be paid on May 22, 2026.
Shares in UOI remain unchanged at $7.93 on Feb 20.
