Great Eastern’s Profits Driven by Investment Income in Singapore

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Great Eastern Holdings has reported a 27% increase in profit attributable to shareholders for the financial year ended 31 December 2023, reaching S$774.6 million ($576.2 million). The growth was primarily driven by favorable investment performance in the Group’s Singapore Life business and shareholders’ fund.

Although the insurance business remains profitable, it faces challenges from higher medical claims. Total weighted new sales (TWNS) decreased by 12% to S$1,659.4 million in 2023 due to lower single premium sales in the Singapore market, partly offset by growth in regular premium sales, particularly in protection and whole life plans.

Despite these challenges, the core business lines exhibited resilience, with steady growth in new customer count, surpassing 400,000 new customers in 2023. The Group applied Singapore Financial Reporting Standard (International) 17 Insurance Contracts [based on IFRS] from 1 January 2023, affecting the comparative for prior periods.

The board recommended a final one-tier tax-exempt dividend of S$0.40 per ordinary share, subject to shareholder approval at the Annual General Meeting, payable on 17 May 2024. The total dividend for 2023, including the interim dividend, would amount to 75 Singapore cents per ordinary share, representing a payout ratio of approximately 46%.

Great Eastern reaffirmed its commitment to net zero by 2050, focusing on sustainability through innovative insurance solutions, sustainable low-carbon investments, and operations. The Group plans to publish its 2023 Sustainability Report in April 2024.

CEO Khor Hock Seng emphasized the Group’s focus on improving customer experience and developing new products to meet evolving wealth and protection needs across the region. He highlighted the strong agency force and synergistic bancassurance partnership with OCBC Bank, which continue to drive success.

The Group’s expansion includes the proposed acquisition of AmMetLife Insurance (AML) and AmMetLife Takaful (AMT) in Malaysia, along with a 20-year exclusive bancassurance and bancatakaful agreement with AmBank (M) and AmBank Islamic. Pending regulatory approvals, this acquisition will enable the Group to provide insurance solutions to the banks’ customers and expand its distribution network in Malaysia.

Looking ahead, Great Eastern aims to enhance service levels, enrich customer experience through digitalization and analytics, and deliver profitable growth and sustainable value to shareholders. As a subsidiary of OCBC Bank, Great Eastern is a market leader in Singapore and Malaysia, with operations in Indonesia and Brunei.