SINGAPORE (Oct 24): Great Eastern Holdings reported 3Q17 earnings ended Sept of $235.5 million, up 21% from $195 million a year ago largely due to the higher profit from insurance business. This brings 9M17 earnings to $732.9 million from $394.1 million a year ago.
Great Eastern’s Total Weighted New Sales (TWNS) increased 16% to $306.3 million from $264.7 million a year ago but New Business Embedded Value (NBEV) fell 10% to $116.7 million from $129.4 million.
Gross premiums for 3Q17 increased 33% to $3.1 billion from $2.3 billion a year ago.
Profit from insurance business for 3Q17 was $208.6 million, up 22% from $171.1 million in the same quarter last year, mainly because of higher contribution from its Singapore business and gain in our investments from favourable financial market conditions compared to last year.
Profit from shareholders’ fund’s investments for 3Q17 was lower at $53.4 million compared to $59.3 million a year ago mainly because of lower investment income, partly offset by gains from disposal.
Fees and other income increased to $22.8 million for 3Q17 from $20.8 million from higher fee income from the group’s asset management arm, Lion Global Investors.
Group Chief Executive Officer Khor Hock Seng says: “The group continued its strong growth momentum to deliver a strong set of results in the nine months of 2017. Our key operating metrics such as Total Weighted New Sales, New Business Embedded Value and Group Profit Attributable to Shareholders registered significant growth, underpinned by our strong fundamentals.”
Capital adequacy ratios of the group’s insurance subsidiaries in both Singapore and Malaysia “remain strong and well above their respective minimum regulatory levels”.
Looking ahead, the group will work with its distribution partners to offer essential products and services for the customers and the community.
Shares in Great Eastern closed 9 cents higher at $26.16 on Monday.
