AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of United Overseas Insurance Limited (UOI) (Singapore). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect UOI’s balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, neutral business profile and appropriate enterprise risk management. In addition, UOI’s ratings factor in rating enhancement from the company’s ultimate majority ownership by, and importance to, United Overseas Bank Limited (UOB), a leading banking corporation in Asia.
UOI’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which is expected to remain comfortably at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital adequacy remains supported by its consistently robust internal capital generation and low underwriting leverage. AM Best views UOI’s investment portfolio to be of moderate risk, comprising mainly high-quality fixed-income securities, cash and deposits, albeit with a moderate exposure to equity investments. In addition, balance sheet volatility arising from large loss and catastrophe losses is mitigated through reinsurance, while counterparty credit risk is mitigated by a reinsurance panel of sound credit quality.
AM Best views the company’s operating performance as very strong, supported by exceptionally strong and consistent underwriting results. UOI’s disciplined underwriting approach and access to a defensible fire segment of the Singapore non-life insurance market have contributed to consistently stable earnings. Notwithstanding higher catastrophe losses in fiscal year 2025, UOI’s underwriting performance remained highly profitable, with the company reporting a combined ratio (net/net) of 83%, as calculated by AM Best. Investment returns remained favourable and continued to be an important contributor to overall earnings.
As the sole insurance subsidiary of UOB, UOI benefits from cross-selling insurance policies to UOB customers. The company’s affiliation with its banking parent enables good access to business through its bancassurance channel. UOI’s underwriting portfolio remains focused predominantly in Singapore, whereby approximately three quarters of gross premium is sourced domestically. Regional business expansion over the medium term is expected to be aligned with opportunities arising in connection with the group’s strategy.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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