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.
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.
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