Great Eastern Q1 profit hits S$437.6m on favourable market conditions

Singapore

GREAT Eastern posted a net profit of S$437.6 million for its first quarter ended March 31, 2021, 12.9 times the S$33.9 million it reported for the same quarter last year.

This was mainly due to the higher valuation of its investments amid more favourable financial market conditions, the insurance arm of OCBC said in a bourse filing on Monday.

Operating profit for Q1 fell 39 per cent year-on-year to S$182.3 million, from S$298.6 million last year, due to higher "new business strain" in Q1 2021 and positive one-off items in Q1 last year, Great Eastern said.

Meanwhile, non-operating profit came in at S$214.7 million, reversing a loss of S$222.8 million last year. The group attributed this to mark-to-market gains from favourable market conditions in Q1, compared to significant losses the previous year amid unfavorable financial market conditions due to the Covid-19 pandemic.

A S$46.4 million profit net of tax from shareholders' fund was recorded by the group, reversing a S$41.9 million loss last year due to mark-to-market gains amid favourable market conditions.

The group also registered a strong total weighted net sales growth for Q1 of S$383.6 million, up 28 per cent from last year's S$299.1 million. Great Eastern attributed this to sales across all markets, which recorded double-digit growth compared to the same quarter last year.

Amid this growth in sales, new business embedded value grew 30 per cent to S$182.2 million from S$$140.4 million last year.

Group chief executive officer Khor Hock Seng noted that the group had started the year with a "good set of first quarter results", with key operating metrics such as total weighted new sales, new business embedded value and profit attributable to shareholders registering significant growth.

"Our strong performance is anchored on our multi-channel distribution capabilities, complemented by our digital solutions and services as well as a comprehensive suite of products," Mr Khor said.

Great Eastern's shares added S$0.11 or 0.48 per cent to close at S$23.07 on Monday.