Great Eastern posts 13% rise in Q1 profit to $345.5 million
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Great Eastern said new business embedded value grew 19 per cent year on year to $148.8 million.
PHOTO: ST FILE
Chloe Lim
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SINGAPORE - Great Eastern on May 8 reported a 13 per cent year-on-year increase in profit to $345.5 million for the first quarter ended March, versus $306.7 million previously.
This was driven by higher profit from the insurance business as well as favourable investment performance in the group’s shareholders’ fund, said the insurance arm of OCBC Bank.
Profit from the insurance business stood at $246.8 million, up 4 per cent year on year from $236.3 million. This was largely due to a higher release in risk adjustment and improved operating variance from the individual life business.
The company noted, however, that this was partly offset by a higher loss component arising from new strain from the yearly renewable medical insurance business in both Singapore and Malaysia.
Profit from the shareholders’ fund rose 40 per cent year on year to $98.7 million in the first quarter from $70.4 million previously, mainly attributed to higher interest income and mark-to-market gains from bonds.
The group’s total weighted new sales for the quarter declined 34 per cent to $345.1 million against the same period the prior year, which recorded $524.2 million, mainly due to lower single premium sales following the shift towards regular premium sales.
Meanwhile, new business embedded value for the first quarter grew 19 per cent year on year to $148.8 million from $125.5 million, mainly due to a focus on propositions that enhanced the group’s product sales mix.
“In Singapore, we had increased purchases of protection, legacy propositions and regular premium investment-linked plans as we moved away from short-term single premium endowment plans. In Malaysia, our performance remained resilient with greater contributions from legacy and wealth accumulation solutions,” said group chief executive Greg Hingston.
He stressed that the group’s focus remains on strengthening its business and distribution model, supported by data-driven targeted propositions to meet the needs of customers, amid a challenging business climate and increasing volatility in the global landscape.
Shares of Great Eastern have been suspended from trading since July 2024, after the insurer lost its free float following a privatisation offer from OCBC. THE BUSINESS TIMES
