Singlife’s profits to slowly improve: Fitch Ratings

Its H1 2024 earnings rebounded from a loss in 2023.

Singlife’s profits are expected to improve gradually, after recording a S$25m in earnings under the IFRS 17 standard during the first half of 2024, according to Fitch Ratings.

This marks a recovery from a net loss in 2023, driven by increased releases of the contractual service margin and favourable investment results. 

Fitch anticipates continued support from Sumitomo Life, including the potential for additional acquisitions through Singlife as its regional platform.  

The insurer's annualised return on equity improved to 6% in the same period, compared to -5% in 2023. 

Fitch projects that focus on value-added protection-type products will drive further profitability gains. 

Fitch notes, however, that Singlife’s weak financial performance remains a constraining factor. The Singaporean insurer’s capitalisation remains robust, added Fitch.