Great Eastern Q2 earnings up 45% at $280.4 million; declares interim dividend of 45 cents per share

SINGAPORE - Insurer Great Eastern on July 31 posted a 45 per cent increase in net profit to $280.4 million for the second quarter ended June 30, from $193.2 million in the second quarter of the 2023 financial year.

For the six months ended June 30, net profit increased 34 per cent year on year to $587.1 million, from $437.2 million. This was driven by higher profit from the insurance business and favourable investment performance in the shareholders’ fund, said Great Eastern, an OCBC Bank subsidiary.

First-half earnings per share rose 35 per cent on the year to $1.24, from 92 cents.

The board has declared an interim dividend of 45 cents per share for the half year, to be paid on Aug 29.

This is a 12.5 per cent increase from the previous dividend payout, which is consistent with Great Eastern’s practice of paying progressive dividends in line with sustainable profit trends, said the insurer.

For the second quarter, total weighted new sales climbed 34 per cent to $448.3 million, from $335 million in the second quarter of FY2023.

New business embedded value for the second quarter was $175.7 million, a 12 per cent rise from $156.4 million from the corresponding year-ago period.

On a half-yearly basis, total weighted new sales grew 34 per cent to $972.5 million, from $725.9 million. This was attributed to sustained sales momentum in Singapore and Malaysia markets, said the group.

New business embedded value for the six months expanded by 16 per cent to $338.9 million, from $291.8 million, on the back of strong sales performance.

Insurance service result for the first half increased 11 per cent to $412 million, from $371.2 million, due to improved insurance revenue.

The group noted that for first-half FY2024, it has taken steps to optimise its capital and funding structure through the issuance of subordinated and medium-term notes in both Singapore and Malaysia by its subsidiaries. This enhanced its return on equity.

Its group chief executive officer Khor Hock Seng said the group’s focus “remains firmly on achieving long-term, sustainable growth”.

Shares of Great Eastern have been suspended from trading since July 15, when the number of shares in public hands dipped below the 10 per cent free float threshold after OCBC’s offer for the insurer’s shares closed.

THE BUSINESS TIMES