Great Eastern Holdings' first-half 2026 results highlight a divergence in Southeast Asia's life insurance markets, with stronger business momentum in Singapore contrasting with a slower recovery in Malaysia. The Singapore-based insurer reported total weighted new sales (TWNS) of S$813.2 million for the six months ended June 30, 2026, up 15% year-on-year from S$708.6 million. New business embedded value (NBEV) increased 28% year-on-year to S$405.3 million from S$316.5 million.
While the results reflect Great Eastern's business performance, the broader industry takeaway is the different operating conditions facing insurers in the two markets. Singapore's life insurance sector recorded continued growth in 2025, with total weighted new business premiums reaching S$6.53 billion, up 11.3% year-on-year, according to the Life Insurance Association Singapore (LIA). Great Eastern said Singapore remained the main contributor to new business growth in the first half of 2026, supported by customer demand and productivity improvements across distribution channels. Greg Hingston, group chief executive officer of Great Eastern Holdings, said: "Great Eastern's core insurance business delivered a strong first half, with healthy insurance operating performance and supported by an uplift in investment performance in the second quarter. Prudent risk management, a well-diversified business portfolio, and disciplined operational execution continue to anchor our strong fundamentals."
Singapore sales increased 17.2% year-on-year in the second quarter of 2026 and 0.9% quarter-on-quarter, according to Jefferies' analysis of Great Eastern's results. However, growth was uneven across distribution channels. Bancassurance total weighted new sales declined 5.8% from the first quarter of 2026 and fell 6.2% year-on-year. Agency distribution, meanwhile, increased 11.1% quarter-on-quarter and 54.2% year-on-year - a sharp swing that neither Great Eastern nor Jefferies broke down by specific cause (such as agent headcount growth or a particular recruitment or productivity initiative) in the materials available at the time of writing.
The channel performance reflects the importance of distribution productivity in life insurance growth strategies. Jefferies noted that agent productivity trends reported by Great Eastern could provide an indication for other insurers with exposure to Singapore and Malaysia, including AIA and Prudential. The wider Singapore market has also seen demand shift across product segments. LIA data showed that investment-linked products contributed to sector growth in 2025, as insurers continued to see demand for savings, investment, and protection-related solutions. AIA Singapore reported that its agency and partnership distribution channels supported its 2025 performance, with annualised new premiums increasing 23% and value of new business rising 14%.
Great Eastern's Malaysia business recorded TWNS growth of 4.9% year-on-year and 5.1% quarter-on-quarter in the second quarter of 2026. The company attributed the slower growth to "subdued product demand amid softer market conditions," according to Jefferies' report. The quarter-on-quarter figure represents a modest sequential improvement even as the year-on-year comparison remains soft, suggesting Malaysia's recovery may be gaining some traction quarter to quarter without yet showing a clear acceleration against the prior year.
Malaysia's life insurance market has faced pressure from affordability concerns and rising healthcare costs, particularly in medical and health insurance/takaful products. The Life Insurance Association of Malaysia (LIAM) has highlighted industry measures under Malaysia's RESET strategy, including efforts to improve affordability and introduce a base medical and health insurance/takaful product. The slower Malaysian sales recovery is relevant for regional insurers because several major groups have significant exposure to both Malaysia and Singapore. Jefferies noted that upcoming results from insurers such as AIA and Prudential would provide further indications on whether the Malaysian market recovery is gaining momentum.
Great Eastern's NBEV growth exceeded its sales growth during the first half of 2026, increasing 28% compared with the 15% increase in TWNS. The insurer attributed the increase to higher sales and a more favourable product mix, particularly in Singapore. Jefferies reported that Great Eastern's NBEV margin increased to 51.0% in the second quarter of 2026, compared with 46.1% in the second quarter of 2025 and 48.6% in the first quarter of 2026. The margin was the second-highest quarterly level in the previous two years, after reaching 53.1% in the fourth quarter of 2025. The margin movement indicates that insurers are increasingly focused not only on sales volume but also on the profitability and composition of new business.
Great Eastern reported profit attributable to shareholders of S$849.5 million for the first half of 2026, compared with S$593.7 million in the same period last year. Second-quarter profit attributable to shareholders increased 103% year-on-year to S$503.2 million. The company said earnings growth was mainly driven by higher insurance operating profit, continued earnings emergence from its in-force portfolio, positive underlying experience, and operational execution. Investment performance in the second quarter was also more favourable compared with the same period in 2025. Great Eastern said the capital adequacy ratios of its insurance subsidiaries remained above their respective minimum regulatory requirements.
The company's board declared an interim one-tier tax-exempt dividend of 35 cents per share for the financial year ending Dec. 31, 2026, payable on August 28, 2026 - a 40% increase from the 25-cent interim dividend paid in September 2025, continuing the progressive dividend growth policy that also saw Great Eastern's total FY2025 payout rise 22% over FY2024.
