Great Eastern Q2 profit falls 11% to $248.2 million

SINGAPORE - Insurer Great Eastern on July 28 posted an 11 per cent decline in second quarter net profit to $248.2 million, from $280.4 million in the previous corresponding period.

The group attributed the decline to lower profit from its insurance business for the quarter.

For the six months ended June, net profit inched up 1 per cent to $593.7 million from $587.1 million in the year-ago period.

First-half earnings per share rose to $1.25 from $1.24 previously.

Total weighted new sales for the second quarter fell 19 per cent to $363.5 million, from $448.3 million a year ago. New business embedded value rose 14 per cent to $167.7 million from $146.5 million.

On a half-yearly basis, total weighted new sales slid 27 per cent to $708.6 million, from $972.5 million.

First-half new business embedded value climbed 16 per cent to $316.5 million from $272 million.

As resolutions to facilitate resumption of trading in Great Eastern’s shares were passed at its extraordinary general meeting on July 8, the company said it will execute a bonus issue of up to 473.3 million bonus ordinary shares and/or Class C non-voting shares on or around Aug 19.

The bonus shares are expected to be allotted and issued before the record date of the interim dividend on Aug 28.

Thus, the interim one-tier tax-exempt dividend of 25 cents per share for the financial year ending Dec 31, 2025, will apply to all shares on a post-bonus issue basis.

This includes the bonus ordinary shares and Class C non-voting shares.

This is equivalent to an interim one-tier tax exempt dividend of 50 cents per ordinary share on a pre-bonus issue basis, the insurer said.

The financial year 2025 interim dividend will be paid on Sept 5.

Shares of Great Eastern have been suspended since July 2024.

THE BUSINESS TIMES