The insurer's total weighted new sales in Q4 fell 16% to S$432.7 million from S$514.1 million in the year-ago period. — The Straits Times
SINGAPORE: Great Eastern reports a net profit of US$134.8mil for the fourth quarter (4Q) ended Dec 31, 2024 down 14% from US$157.2mil in the previous corresponding period.
The insurance provider said: “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 4Q fell 16% to US$432.7mil from US$514.1mil, amid lower single premium sales in the Singapore market.
New business embedded value (NBEV) slid 53% to US$105.7mil from US$225.9mil.
The group had written down its NBEV by US$91.7mil in 4Q to reflect revised actuarial assumptions following the annual review exercise at the end of the year.
Excluding this impact, NBEV in 4Q would have been US$197.4mil, down 13% year-on-year. This was mainly due to the decline in total weighted new sales.
The board has proposed a final dividend of 45 US cents per share, which will be payable on May 6, following the record date of April 21.
Including the interim dividend of 45 US cents per share paid in August 2024, the total dividend for the financial year 2024 (FY24) would amount to 90 US cents per share, an increase of 20% from 75 US cents per share in FY23.
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% to US$995.3mil from US$774.6mil.
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% on the year to US$264.6mil from US$125mil.
This was attributed to strong investment performance and mark-to-market gains amid favourable investment market conditions.
Total weighted new sales rose 8% to US$1.8bil from US$1.7bil.
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 US$713.2mil, an increase of 4% on the year.
Last May, OCBC made a US$1.4bil bid for the remaining 11.56% stake in Great Eastern that it did not already own, with the aim to delist the insurer.
The bank held nearly 94% 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 Jan 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 Straits Times/ANN
