Singapore listed insurance trio posts 8.6% return in May

The three insurers performed strongly despite intensified competition.

Singapore’s three listed insurance companies averaged 8.6% total return in 2018 YTD, bringing total average 12M returns to 31.4%, according to market updates from SGX. 

These include Great Eastern Holdings, United Overseas Insurance and Singapore Reinsurance Corp which have a combined market value of $11.57b (SG$15.5b).

“Whilst intensified competition and economic uncertainty provide challenges, the insurance industry is expected to further diversify distribution channels whilst exploring and engaging digital innovation,” said SGX.

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Great Eastern was the strongest performer of the three after posting a total return YTD of 15.2% followed by Singapore Reinsurance Corp at 5.8% and United Overseas Insurance at 4.9%.

The profits attributable to shareholders of Great Eastern surged 68% YoY to $114.1m (SG$152.9m) amidst higher profit from the local insurance business. Singapore Reinsurance Corp, also registered 11.6% YoY increase in profits on the back of higher gross written premiums.

On the other hand, United Overseas Insurance trailed its peers after attributable profit crashed 35.5% YoY to $3.36m (SG$4.5m) amidst lower underwriting and investment results.

However, the outlook for the insurance industry remains rosy as the lion city is fast emerging as a key regional centre for insurance and reinsurance amidst a strong regulatory environment and entry of global companies and brokers spurring demand for life and health products, SGX added.