Great Eastern Holdings, a member of the OCBC Group, has announced a profit of 4.6 million for the fiscal year 2023 ending in December, showing a strong 27% year-on-year increase. This growth can be credited to favorable investment performance in its Singapore life business and shareholders fund. However, the insurance business profitability was slightly impacted by higher medical claims.
The total weighted new sales (TWNS) for the fiscal year 2023 experienced a 12% decline compared to the previous year, mainly due to reduced single premium sales in the Singapore market. The inverted Singapore dollar yield curve has made shorter-term, interest-yielding investments more appealing to customers than single premium products.
Although there was a decrease in single premium product sales, there was an increase in regular premium sales, particularly in protection and whole life plans through the group’s core distribution channels. Despite this offset, Great Eastern’s new business embedded value (NBEV) for the fiscal year 2023 saw an 11% year-on-year decrease.
The board has proposed a final one-tier tax-exempt dividend of 40 cents per ordinary share, set to be paid on May 17. When considering the interim one-tier tax-exempt dividend of 35 cents per ordinary share distributed in August 2023, the total cumulative dividend for FY2023 would be 75 cents per ordinary share.
Despite the challenges faced in the operating environment throughout 2023, the group remained focused on core strategies to enhance customer experience and introduce new products to meet the changing wealth and protection needs across the region, as stated by group CEO Khor Hock Seng.
Looking ahead, the company plans to explore innovative approaches to improve service levels and enhance customer experience through digitalization and analytics. Khor expressed confidence in the strong foundation laid, positioning the company to effectively serve customers, achieve profitable growth, and deliver long-term sustainable value to shareholders.
As of February 23, shares in Great Eastern closed 5 cents lower, resulting in a 0.27% decrease, at .24. The company remains optimistic about its future prospects and is committed to adapting to market changes to continue its upward trajectory.
