Great Eastern Holdings G07 , a member of the OCBC Group, reported earnings of $244.0 million for the 1QFY2023 ended March 31, 10.9% higher than the earnings of $220.0 million in the 1QFY2022.
For the current quarter, the earnings were reported on the SFRS(I) 17 insurance contracts basis while the earnings for the 1QFY2022 were reported based on SFRS(I) 4 insurance contracts principles. The impact of the new method of reporting will be disclosed in the group’s 1HFY2023 results.
SFRS(I) 17 replaces SFRS(I) 4 and is effective for annual periods beginning on or after Jan 1. The accounting change will affect the timing of profit recognition and initial shareholders’ equity, but will not change the way the group’s business operates.
The group’s total weighted new sales (TWNS) fell by 22% y-o-y to $390.9 million due to lower sales from single premium plans and offset by better performance in regular premium sales.
New business embedded value (NBEV) fell by 11% y-o-y to $169.7 million due to the lower TWNS. However, NBEV margins stood higher y-o-y due to the change in product mix.
The capital adequacy ratios of the group’s insurance subsidiaries in Singapore and Malaysia remained “strong” and well above their respective minimum regulatory levels.
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“Our ability to adapt to change is a key driving factor underpinning our financial results in the long term. In the first quarter, we achieved margin improvements for our life business across all markets compared to the same period last year. Given our distribution capabilities, digital solutions and comprehensive suite of products, we remain confident about the long-term growth of the group,” says Khor Hock Seng, Great Eastern’s group CEO.
Shares in Great Eastern closed 19 cents higher or 1.11% up at $17.28 on May 4.
