Great Eastern Q3 profit falls 72% to S$102.9 million on weaker valuations, divestment loss

[SINGAPORE] Insurer Great Eastern on Monday (Nov 2) posted a net profit of S$102.9 million for its third quarter ended Sep 30, 72 per cent down from S$372 million in the year-ago period.

The decline was primarily driven by the “negative impact of financial market movements on the valuation of investments and a non-recurring loss arising from the partial divestment of the group’s subsidiary, Great Eastern Life Indonesia (Geli), to OCBC Indonesia”, the group said in its Q3 business update.

However, the weaker reported earnings “do not change the strength of underlying business fundamentals”, as the group’s “core insurance business remained resilient and continued to grow”, said Great Eastern CEO Greg Hingston.

Following the completion of the Geli transaction on Sep 1 to comply with local regulatory requirements, Great Eastern ceased to have control over the subsidiary. The transaction resulted in a loss on disposal of S$57.1 million, which was substantially offset by a reclassification gain of S$52.6 million in other comprehensive income.

Accordingly, while the transaction reduced reported net profit, its overall impact on the group’s total comprehensive income was “broadly neutral”, Great Eastern added.

Growing new business

For the three months, the group’s new business embedded value rose 14 per cent on the year to S$208.2 million from S$182.2 million.

For the first nine months of the year, new business embedded value grew 23 per cent, “continuing to outpace sales growth”, Hingston said, adding that the group’s “underlying business continued to perform well”.

The growth in new business embedded value was supported by what the group described as a “more favourable and diversified product mix”.

Total weighted new sales for Q3 fell 3 per cent to S$362.4 million, from S$373.1 million in the year-ago period, reflecting “some moderation”, the insurer noted.

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In Malaysia, total weighted new sales edged up to S$117 million in Q3 2026, from S$113.3 million in the previous corresponding period. In Singapore, they fell on the year to S$238.1 million, from S$251.9 million.

For the nine months to Sep 30, total weighted new sales grew 9 per cent year on year, with Singapore the main contributor to growth. Malaysia also recorded growth despite more subdued market conditions.

For the nine months ended Sep 30, net profit declined 1 per cent to S$952.4 million, from S$965.7 million in the year-ago period.

Great Eastern said the marginal decline was cushioned by strong core insurance profit, which helped offset weaker investment profit arising from financial market movements and the loss from the partial divestment of Geli.

The investment outlook is expected to remain challenging in the near-to-medium term, amid geopolitical uncertainty and inflationary pressures, the group noted.

Shares of Great Eastern closed at S$19.11 on Friday, down 1.2 per cent, or S$0.23.