Great Eastern Holdings, a member of the OCBC Group, saw profit attributable to shareholders (or earnings) for 3QFY2020 ended September rise 40% to $287.9 million from the $205.1 million reported a year ago.
For the 9MFY2020, profit attributable to shareholders fell 14% to $619.3 million from the $716.8 million in 9MFY2019 due to the earnings plunge in 1QFY2020 amid unfavourable market conditions.
Total weighted new sales (TNWS) for 3QFY2020 increased 36% y-o-y to $432.8 million due to the pick-up of activity across all markets.
TNWS for the 9MFY2020 was up 18% y-o-y to $1.02 billion driven by strong momentum from the group’s Singapore business.
New business embedded value (NBEV) for 3QFY2020 inched up 2% y-o-y to $160.2 million, while NBEV fell 6% y-o-y to $395.4 million for the 9MFY2020.
3QFY2020 operating profit from the group’s insurance business fell 4% y-o-y to $171.4 million due to higher new business strain on higher sales in Singapore.
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Non-operating profit from insurance business for the quarter rose to $50.0 million from the $31.3 million loss posted in 3QFY2019.
Profit from shareholders’ fund for 3QFY2020 rose 20% y-o-y to $74.9 million due to mark-to-market gains from equities.
The group says the capital adequacy ratios of its insurance subsidies in Singapore and Malaysia remain “strong and well” above their respective minimum regulatory levels.
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“The Group’s focus on strengthening our distribution capabilities paid off in the first nine months of the year. Our agency force was able to adapt swiftly in the current operating environment, capitalising on the digital and technology infrastructure provided by the company and this has contributed to the Group’s strong sales performance,” says group CEO Khor Hock Seng.
Highlighting the group’s major digital and technology infrastructure initiatives, Khor says these initiatives have helped the group cushion the impact of movement controls, which restricted sales activities.
“We have recently launched a Great Eastern mobile app to provide customers with active policy management capabilities and better visibility of wealth and protection policy benefits. Also, we have been actively expanding our digital reach and in Singapore, have partnered Singtel to launch a range of general insurance products, which span home, motor and travel and feature telco-centric benefits to address customers’ unique needs arising from their increasingly digital lifestyles,” he adds.
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Predicting the likelihood of persisting uncertainties in the near future, Khor says “it remains critical that we continue to strengthen our reach and continue to innovate to better serve the needs of our customers.”
Shares in OCBC closed flat at $8.57 on Nov 3.
