Saturday, April 13, 2024

Great Eastern Holdings Announces a Profit of $774.6 million for 2023, With a 27% Y-o-Y Rise

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Great Eastern Holdings, a member of the OCBC Group, has posted earnings of $774.6 million for the fiscal year 2023 ending in December, marking a 27% year-on-year increase. This growth is attributed to favourable investment performance in its Singapore life business and shareholders fund. Despite the overall health of its insurance business profitability, it has been somewhat affected by increased medical claims.

The group’s total weighted new sales (TWNS) for the fiscal year 2023 saw a 12% decline compared to the previous year, primarily due to reduced single premium sales in the Singapore market. The inverted Singapore dollar yield curve has made shorter-term, interest-yielding investments more attractive to certain customers than single premium products.

The decline in single premium product sales was partially offset by an up-tick in regular premium sales, particularly in protection and whole life plans through the group’s core distribution channels. However, due to lower sales, Great Eastern’s new business embedded value (NBEV) for the fiscal year 2023 experienced an 11% year-on-year decrease.

The board has proposed a final one-tier tax-exempt dividend of 40 cents per ordinary share, scheduled for payment on May 17.

When considering the interim one-tier tax-exempt dividend of 35 cents per ordinary share disbursed in August 2023, the cumulative dividend for FY2023 would total 75 cents per ordinary share.

Despite the challenging operating environment throughout 2023, the group maintained its focus on core strategies, aiming to enhance customer experience and introduce new products to meet evolving wealth and protection needs across the region, according to group CEO Khor Hock Seng.

Looking ahead, the company plans to explore innovative approaches to elevate service levels and enrich customer experience through digitalization and analytics. Khor expressed confidence in the strong foundation laid, positioning the company to serve customers effectively, achieve profitable growth, and provide long-term sustainable value to shareholders.

On February 23, shares in Great Eastern concluded 5 cents lower, marking a 0.27% decrease, closing at $18.24.

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