Great Eastern's profits hit by steeper medical claims, new business strain

Singapore

STEEPER medical claims and greater new business strain resulting from higher new sales volume were chief reasons why Great Eastern Holdings reported a lower profit for its core insurance business, in turn weighing down earnings for the fourth quarter and for the full year.

The insurance arm of OCBC Bank on Monday said its net profit was down 11 per cent year-on-year at S$195.2 million, while full year profit fell 25 per cent to S$589.3 million.

Profit from its life business plunged 38 per cent to S$148.3 million for the three months ended December 2016. This, as growth in its participating fund business was more than offset by the decline in its investment linked business and the 57 per cent fall in its non-participating fund profit. The non-participating segme…