Great Eastern publishes full-year financials

Shareholder profits, total weighted new sales down

Great Eastern publishes full-year financials

Insurance News

By Kenneth Araullo

Singaporean multinational insurer Great Eastern has posted its financial results for the full year of 2022, with a quick rundown noting losses for shareholders and total weighted new sales. Despite this, Great Eastern group CEO Khor Hock Seng remains confident in the company’s statement, noting that the insurer’s “investment portfolio remains sound and that [its] capital position remains strong.”

The insurer’s downturn was a departure from its Q3 2022 results, which posted a 30% year-on-year increase in profit.

Falloff of 30%

Shareholder profits declined in Q4 2022, posting SG$3.3 million. According to the report, this largely reflects the negative impact of financial market movements, which adversely impacted the valuation of insurance contract liabilities in the non-participating business of Singapore.

The profit attributable to shareholders recorded a falloff of 30% to SG$784.2 million, reflecting the lower valuation of investments due to the challenging global investment climate. That said, operating profit from its insurance business grew 7% for the year.

Great Eastern’s total weighted new sales (TWNS) declined 9% in the fourth quarter of 2022, leading to a 3% decrease for the entire fiscal year. This comes from lower sales from the single premium plans, offset partially by better performance in the regular premium sales. In contrast, the insurer’s new business embedded value (NBEV) posted some growth, with 22% recorded for Q4 2022 and 9% in the entire fiscal year, posting SG$279.5 million and SG$874.8 million, respectively.

Notwithstanding the losses, the capital adequacy ratios of Great Eastern’s insurance subsidiaries in Singapore and Malaysia remain strong and well above the respective minimum regulatory levels, according to the report.

“While the group’s profit was impacted by the volatility in the global financial markets during the year, our investment portfolio remains sound and our capital position also remains strong,” Hock
Seng said. “The group’s NBEV and operating profit from insurance business continued its good growth momentum, underscoring the strength of our core business fundamentals, achieving a year-on-year growth of 9% and 7% for the full year.”

The CEO also said that while the current business climate remains challenging as a reflection of geopolitical uncertainties, difficult investment climate, and inflationary pressures, the insurer still remains optimistic.

“We remain positive on the long-term growth potential of the markets we operate in and will continue to strengthen our business model and build a resilient and sustainable business for the long term,” Hock Seng said.

Compared to Great Eastern’s results, Allianz Asia Pacific fared better, with the global insurer posting a “strong and resilient” FY22 performance despite difficult market conditions.

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