SINGAPORE (Apr 19): Singapore Reinsurance reported first quarter earnings increased 11.6% to $5.2 million in 1Q18 compared to $4.6 million in 1Q17.
Gross written premium rose 22.1% to $39.5 from $32.4 million a year ago due to timing difference in receipt and booking of statement of accounts.
However, net written premium dropped 26.2% to $9.83 million due to lower premiums booked for a cedant and the decline in net premium income resulted in a negative premium reserve strain of $1.2 million.
Net commission expense halved to $2.82 million in 1Q18 from $5.39 million in 1Q17 in light of lower net written premium income and profit commission accrual.
As a consequence, underwriting surplus rose 1.8% to $2.77 million in the quarter under review.
Net claims incurred increased 0.3% to $3.73 million from $3.72 million in the previous year.
In spite of the spate of mega catastrophic losses around the world in 4Q17, global excess reinsurance capacity appears to remain largely intact and this will continue to fuel intense competition and have adverse impact on the group’s premium growth and profitability.
Looking forward, the investment environment will also likely to remain volatile and uncertain, given the many unresolved disputes geopolitical and economic in nature among the major economies in the world.
Shares in Singapore Reinsurance closed at 32 cents on Thursday.
