AM Best Affirms Credit Ratings of United Overseas Insurance Limited

SINGAPORE–()–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). AM Best expects UOI’s capital adequacy to remain supported by stable internal capital generation, low underwriting leverage and a balanced investment strategy. A partially offsetting balance sheet factor remains the company’s significant reliance on reinsurance usage, which enables the underwriting of large limit risks. Nonetheless, the company maintains long-standing relationships with key reinsurers and a reinsurance panel consisting of well-rated counterparties.

AM Best views the company’s operating performance as very strong, as evidenced by its five-year average combined ratio of 44.7% and operating ratio of 12.6% (2017-2021). UOI’s excellent underwriting performance remains driven by very favourable loss ratios emanating from the company’s targeted underwriting approach and access to affiliated bank channel business from UOB. Technical results in recent years also have benefited from significant inward commissions, reflecting the strong performance of business ceded to reinsurers. AM Best views UOI’s investment income as favourable, with non-technical operations having been a key contributor to overall earnings over many years.

UOI holds a strong competitive position in Singapore’s non-life market as the sole insurance subsidiary of UOB. The company’s affiliation with its banking parent enables good access to business through the bancassurance channel, as well as a strong brand and reputation to trade upon in other target segments. UOI’s underwriting portfolio remains focused predominantly in Singapore, with the company expected to approach regional growth cautiously and remain centered on opportunities arising in connection with UOB’s regional expansion. In addition, UOI plays an important role in providing risk management and insurance advisory services to the UOB group.

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

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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