UOI targets growth as capital stays strongest: AM Best

Consistent internal generation and low underwriting leverage support its financial position.

United Overseas Insurance Limited’s (UOI) could expand its regional business in line with opportunities arising from the wider strategy of its parent group.

Its risk-adjusted capitalisation is expected to remain at the strongest level over the medium term, based on its Best’s Capital Adequacy Ratio (BCAR). 

The company’s capital position is supported by consistent internal capital generation and low underwriting leverage, AM Best said in its research note.

They also take into account the rating support provided by UOI’s ultimate majority ownership by United Overseas Bank Limited (UOB), one of Asia’s leading banking groups.

UOI’s investment portfolio is considered to have moderate risk and consists mainly of high-quality fixed-income securities, cash and deposits, although it has a moderate exposure to equities. 

Reinsurance also helps limit the impact of large losses and catastrophe events, whilst the company’s reinsurance panel is considered to have sound credit quality.

AM Best described UOI’s operating performance as very strong, citing consistently strong underwriting results.

The company’s disciplined underwriting and access to Singapore’s fire insurance market have supported stable earnings.

Despite higher catastrophe losses in fiscal year 2025, UOI’s underwriting performance remained profitable, with a combined ratio of 83% on a net/net basis, as calculated by AM Best.

Investment returns also remained favourable and continued to contribute to the company’s overall earnings.

As UOB’s sole insurance subsidiary, UOI benefits from the bank’s customer base and bancassurance network. 
About three-quarters of its gross premiums are sourced from Singapore, where its underwriting portfolio remains primarily focused.