Great Eastern Q4 profit falls 14% to $134.8 million
Sign up now: Get ST's newsletters delivered to your inbox
The insurer's total weighted new sales in Q4 fell 16 per cent to $432.7 million from $514.1 million in the year-ago period.
PHOTO: ST FILE
Crystal Heng
Follow topic:
SINGAPORE - Great Eastern on Feb 25 reported a net profit of $134.8 million for the fourth quarter ended Dec 31, down 14 per cent from $157.2 million in the previous corresponding period.
The insurance provider noted that the fourth quarter “saw several developments in the medical insurance business from both Singapore and Malaysia”.
These developments were taken into consideration, resulting in a lower profit recorded for the period.
Total weighted new sales in the fourth quarter fell 16 per cent to $432.7 million from $514.1 million, amid lower single premium sales in the Singapore market.
New business embedded value (NBEV) slid 53 per cent to $105.7 million from $225.9 million.
The group had written down its NBEV by $91.7 million in the fourth quarter to reflect revised actuarial assumptions following the annual review exercise at the end of the year.
Excluding this impact, NBEV in the fourth quarter would have been $197.4 million, down 13 per cent year on year. This was mainly due to the decline in total weighted new sales.
The board has proposed a final dividend of 45 cents per share, which will be payable on May 6, following the record date of April 21.
Including the interim dividend of 45 cents per share paid in August 2024, the total dividend for financial year 2024 would amount to 90 cents per share, an increase of 20 per cent from 75 cents per share in financial year 2023.
Barring unforeseen circumstances, Great Eastern said it “aims to maintain each dividend amount to be no lower than the preceding one”.
For the full year, net profit rose 28 per cent to $995.3 million from $774.6 million.
This was attributed to improved expense variances from cost management initiatives, improved claims experience from the individual life business, as well as favourable investment performance from shareholders’ fund.
Profit from shareholders’ fund surged 112 per cent on the year to $264.6 million from $125 million.
This was attributed to strong investment performance and mark-to-market gains amid favourable investment market conditions.
Total weighted new sales rose 8 per cent to $1.8 billion from $1.7 billion. The group’s operations in Singapore and Malaysia continued its growth momentum, driven by its agency channels.
Excluding the impact of the revised actuarial assumptions, the group’s NBEV for the full year stood at $713.2 million, an increase of 4 per cent on the year.
Last May, OCBC made a $1.4 billion bid for the remaining 11.56 per cent stake in Great Eastern that it did not already own, with the aim to delist the insurer.
The bank held nearly 94 per cent of the insurer when the takeover offer closed in July but this was not enough for Great Eastern to delist or for OCBC to compulsorily acquire the rest of its shares.
However, it did result in Great Eastern breaching the minimum free float requirement and its shares were suspended from trading.
In January 2025, the insurer made an application to the Singapore Exchange (SGX) for a further extension of time to examine its options for complying with the free float requirements under the SGX’s listing rules.
SGX had no objection to granting the extension and Great Eastern has until May 25 to explore options.
Its shares have been suspended from trading since July. THE BUSINESS TIMES
