[SINGAPORE] Great Eastern on Thursday (May 8) posted a 13 per cent year-on-year increase in profit to S$345.5 million for the first quarter ended March, versus S$306.7 million previously.
This was driven by higher profit from the insurance business as well as favourable investment performance in the group’s shareholders’ fund, said the insurance arm of OCBC.
Profit from the insurance business stood at S$246.8 million, up 4 per cent year on year from S$236.3 million. This was largely due to a higher release in risk adjustment and improved operating variance from the individual life business.
The life insurance company noted, however, that this was partly offset by a higher loss component arising from new strain from yearly renewable medical insurance business in both Singapore and Malaysia.
Profit from shareholders’ fund rose 40 per cent year on year to S$98.7 million in Q1 from S$70.4 million previously, which was mainly attributed to higher interest income and mark-to-market gains from bonds.
The group’s total weighted new sales for the quarter declined 34 per cent to S$345.1 million against the same period the prior year, which recorded S$524.2 million, mainly due to lower single premium sales following the shift towards regular premium sales.
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Meanwhile, new business embedded value for Q1 grew 19 per cent year on year to S$148.8 million from S$125.5 million, mainly due to a focus on propositions which enhanced the group’s product sales mix.
“In Singapore, we had increased purchases of protection, legacy propositions and Regular Premium Investment-Linked plans as we moved away from short-term single premium endowment plans. In Malaysia, our performance remained resilient with greater contributions from legacy and wealth accumulation solutions,” said Greg Hingston, group chief executive.
He stressed that the group’s focus remains on strengthening their business and distribution model, supported by data-driven targeted propositions to meet the needs of customers, amid a challenging business climate and increasing volatility in the global landscape.
Shares of Great Eastern closed flat on Wednesday at S$25.80.
