NTUC Income AR 2018

Directors’ Report FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 As a social enterprise, we give financial security to our customers and deliver positive social impact to our community. We help our customers to meet their protection, savings and investment needs. Increasingly, we are serving our customers digitally as we continue to enhance our customers’ experience with us. Being customer-focused has always been our anchor since we were incepted in 1970 to provide affordable insurance to workers in Singapore. Today, Income serves more than two million customers from all walks of life in Singapore. 2018 PERFORMANCE HIGHLIGHTS In 2018, the life insurance industry in Singapore achieved a growth of 3.6% in weighted new business premiums. Income outperformed the industry with a growth of 10.2% despite a challenging operating environment and improved our market share compared to the year before. Similarly, we maintained our market leadership in general insurance and remained the top insurer in motor insurance. Here are some key highlights of our business performance for the year ended 31 December 2018. • Total gross premiums for 2018 was $3.6 billion; • Insurance operating results rose 34.5% from $116 million in 2017 to $156 million in 2018; and • Total assets reached $37 billion. Above figures represent NTUC Income entity results. LIFE INSURANCE In 2018, Income wrote $3.3 billion of total gross life and health insurance premiums, and weighted new business premiums recorded a strong growth at 10.2% year on year. GENERAL INSURANCE Overall, the general insurance business generated $341 million in earned premiums in 2018, which was 6.2% higher than the previous year. Motor insurance remained the key contributor to the general insurance business, closing the year 5.7% higher than 2017 at $242 million. We were once again Singapore’s top motor insurer as we grew our market share by premium to 21.7% and achieved market share of 26.8% in terms of vehicle count in 2018. We also saw an upswing across our non-motor business as our commercial and personal lines of business recorded a 4.2% and 10.6% growth respectively compared to last year. General insurance Life & health insurance Insurance Operating Results (in $ million) Gross Premiums (in $ million) 2.1% 34.5% Total Assets (in $ billion) 2.8% $116 $156 2017 2017 2017 2018 2018 2018 $3,556 $3,632 $36 $37 $3,235 $3,291 $341 $321 9 2018 ANNUAL REPORT