Great Eastern Holdings Limited has posted improved profitability and embedded value for the first quarter of 2025 (Q1 2025), even as new sales declined amid a shift in its product mix strategy.
The group recorded a 13% year-over-year rise in profit attributable to shareholders, totalling S$345.5 million, for the three months ended March 31, 2025. The increase was supported by ongoing growth in the insurance business and favourable market conditions that boosted returns from the shareholders’ fund.
New business embedded value (NBEV), a key metric reflecting the present value of future profits from new policies, rose 19% to S$148.8 million.
Meanwhile, total weighted new sales (TWNS) fell 34% year-on-year to S$345.1 million, a decline the company attributed to a greater emphasis on regular premium policies over single-premium products.
According to the company, the change in sales strategy has led to an improved mix of policies, which supported the increase in NBEV despite the overall drop in sales volume.
In Singapore, the insurer saw increased demand for protection and wealth transfer products, including regular premium investment-linked policies. In Malaysia, contributions were mainly from legacy and accumulation solutions.
Chief executive officer Greg Hingston said the first-quarter performance was consistent with the group’s strategy of refining its product suite and targeting specific customer segments.
“We are pleased to report a solid set of results for the first quarter of 2025, underpinned by resilient profit growth and disciplined execution across the group,” he said.
Meanwhile, for the full year ended Dec. 31, 2024 (FY24), Great Eastern reported an annual profit of S$995.3 million, marking a 28% increase from the prior year. The insurer attributed this growth to tighter cost controls, favourable claims trends, and improved investment performance.
TWNS for FY2024 climbed 8% to S$1.8 billion. The company noted that its agency channels in Singapore and Malaysia were key contributors to the growth. However, fourth-quarter sales were down 16% compared to the same quarter in 2023 due to a decline in single-premium business in Singapore.
The group’s full-year NBEV dropped 9% to S$621.5 million, but this figure included a S$91.7 million downward adjustment stemming from revised actuarial assumptions during year-end reviews. Excluding that adjustment, the group said its NBEV would have increased by 4% year-on-year.
Great Eastern expects market volatility and external risks, including geopolitical tensions and shifting trade dynamics, to pose challenges over the near to medium term.
“Looking ahead, the business climate will be challenging in the near to mid-term reflecting the increasing volatility in the global landscape, including new trade measures and ongoing geopolitical tensions. Our focus remains on strengthening our business and distribution model, supported by data driven targeted propositions to meet the needs of our customers,” Hingston said.
