Great Eastern Holdings (GEH), a member of the OCBC group, has reported earnings of $278.0 million for the 3QFY2022 ended Sept 30, 30% higher than earnings of $213.3 million in the corresponding period the year before.
The increase in earnings was driven by the higher profit from insurance business, says the group.
During the 3QFY2022, GEH’s total weighted new sales fell 27% y-o-y $403.4 million due to lower sales from the single premium plans and offset by better performance in regular premium sales.
New business embedded value (NBEV) grew 10% y-o-y to $202.1 million as a result of a shift towards more favourable product mix. As such, the quarter enjoyed higher NBEV margins.
In the 3QFY2022, operating profit from insurance business fell by 38% y-o-y to $208.1 million while non-operating profit from insurance business reversed into profitability to $83.9 million from the $3.5 million loss in the 3QFY2021.
Profit from shareholders’ fund saw a reduced loss of $14.1 million, up from the $28.4 million loss in the 3QFY2021.
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During the 9MFY2022, GEH’s earnings fell by 12% y-o-y to $780.9 million. This was due to the lower valuation of investments in the shareholders’ fund on the back of the challenging global investment climate and balanced by the stronger profit from insurance business for the nine-month period.
The group’s total weighted new sales for the 9MFY2022 dipped by 1% y-o-y to $1.46 billion due to a softer performance from the 3QFY2022.
9MFY2022 NBEV grew by 4% y-o-y due to a more favourable product mix, same as that of the 3QFY2022.
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The nine-month period’s operating profit from insurance business dipped 0.4% y-o-y to $573.6 million.
At the same time, non-operating profit from insurance business increased by 25% y-o-y to $311.2 million.
Profit from shareholders’ fund, however, fell into the red at a $103.9 million loss, down from the $73.8 million gain in the 9MFY2021. The loss was driven by equities and bonds compared to a relatively flat mark-to-market performance a year ago.
According to the group, its capital adequacy ratios of its insurance subsidiaries in Singapore and Malaysia remain strong and well above their respective minimum regulatory levels.
Looking ahead, GEH’s Group CEO Khor Hock Seng says that the business climate will be “challenging” in the near- to mid-term.
“[This is on the back of] geopolitical uncertainty, a difficult investment climate and inflationary pressures. Our focus remains on strengthening our business and distribution model, supported by data driven targeted propositions to meet the needs of our customers,” he adds.
As at 10.46am, shares in GEH are trading 2 cents higher or 0.11% up at $18.06.
