Great Eastern Q1 total weighted new sales down 22% to S$390.9 million
INSURANCE company Great Eastern posted a 22 per cent fall in total weighted new sales to S$390.9 million for its first fiscal quarter ended Mar 31, from S$503.6 million in the same period the year before.
The decline was due to lower single-premium sales from the Singapore market and was partially offset by better performance in regular premium sales, said the insurance arm of OCBC on Friday (May 5).
Within Singapore, total weighted new sales fell 31 per cent to S$254.1 million in the first quarter, from S$370 million. The company attributed this to lower single-premium sales amid strong competition among banks and money market instruments.
The group experienced an 11 per cent fall in new business embedded value (NBEV) to S$169.7 million in the first quarter, from S$190.5 million the previous year.
Despite the fall in NBEV – as a result of lower sales in the Singapore market – Great Eastern noted that margins were higher in Q1 across all markets due to the shift in product mix.
Profit attributable to shareholders stood at S$244 million in Q1, compared with S$220 million a year earlier.
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As the group had adopted a new financial reporting standard on Jan 1, the comparative for Q1 2022 profit attributable to shareholders has not been restated and was reported based on the previous standard.
The accounting change will impact the timing of profit recognition and initial shareholders’ equity, noted Great Eastern.
The restated comparative information will be disclosed upon the insurance company’s H1 2023 interim financial statements, it added.
Group chief executive officer Khor Hock Seng said the group achieved margin improvements for its life business across all markets compared to a year ago.
“Given our distribution capabilities, digital solutions and comprehensive suite of products, we remain confident about the long-term growth of the group,” he added.
Shares of Great Eastern closed up 1.1 per cent or S$0.19 at S$17.28 on Thursday.
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