Most people have the impression that motor insurance is unprofitable for the insurance companies in Singapore. This is not the case. 

The table below shows the results for eight companies that are active in motor insurance. This table excludes some companies that also write motor insurance, but in a small volume. 

The eight companies show a total profit of $91.7 million for 2021. The average for the three years is $90.3 million. 

The average premium for the three years is $689.4 million. The profit of 91.7 million6,. represents a profit margin of 13.0%. This is a good profit margin. In competitive markets, the profit margin should be 5%. 

The insurance company with the highest profit in 2021 is NTUC Income ($53.6 million), followed by AXA ($20.4 million) and AIG ($18.1 million).

The total underwriting profit for 2021 is $48.9 million (6.8% of premium). Investment income adds $42.9 million (6.0%  of premium) to give a total of 12.8% for 2021.

The two recent entrants to the market, namely Direct Asia and FWD, sell most of their business through online channels. They are not profitable. They do not write enough business to cover their high management expenses. 

Tan Kin Lian