GREAT Eastern posted a 52 per cent year-on-year increase in net profit to S$273.4 million for the third quarter ended September, from S$180.2 million in the previous corresponding period.
This was driven by contributions from its insurance business and favourable investment performance from shareholders’ funds, said the group on Wednesday (Nov 6) in a business update.
The group’s new business embedded value amounted to S$176.9 million, up 7 per cent on the year from S$165.1 million.
Total weighted new sales for Q3 was, however, down 7 per cent at S$390.8 million, from S$419.4 million previously. The decline came amid lower single premium sales over the quarter this year, following the shift towards regular premium sales, said Great Eastern.
For the nine-month period, total weighted new sales was up 19 per cent on the year at S$1.4 billion, and new business embedded value rose 13 per cent to S$515.8 million.
The better performance came amid sustained sales momentum in Singapore and Malaysia, said Great Eastern.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Net profit for the nine-month period was up 39 per cent on the year at S$860.5 million.
By segment, profit from insurance business was up 17 per cent on the year at S$638.1 million, mainly due to higher contract service margin and risk adjustment release from the life insurance unit.
Meanwhile, earnings from shareholders’ fund segment surged 201 per cent year on year for the nine-month period to S$222.4 million. The higher profit was mainly due to higher interest and dividend income, as well as mark-to-market gains in equities and collective investment schemes, said the group.
Great Eastern said the capital adequacy ratios of its insurance subsidiaries for the quarter “remain strong and well above their respective minimum regulatory levels”.
Commenting on the latest set of results, group chief executive officer Greg Hingston said he viewed the sustained growth as a testament to the effectiveness of the insurer’s business strategies and approach in managing the business.
Shares of Great Eastern have been suspended from trading since Jul 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.
