Continue reading this on our app for a better experience

Open in App
Floating Button
Home Capital Results

Great Eastern reports 26% drop in 3Q21 earnings

Atiqah Mokhtar
Atiqah Mokhtar • 2 min read
Great Eastern reports 26% drop in 3Q21 earnings
Earnings for the nine months ended Sept 30 stood at $883.2 million, 43% higher y-o-y.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Great Eastern Holdings has reported 3QFY2021 ended September earnings of $213.3 million, a 26% decline y-o-y from $287.9 million previously.

This brings year-to-date earnings as of end-September to $883.2 million, 43% higher y-o-y.

Total weighted new sales (TWNS) for the 3QFY2021grew 29% y-o-y to $555.2 million. On a year-to-date basis, TWNS grew 45% y-o-y to $1.47 billion. Great Eastern attributes the strong growth to robust sales momentum in Singapore, which offset the negative impact on sales in Malaysia.


See: DBS Group beats fellow financial industry giants

New business embedded value (NBEV) increased 3% in the 3QFY2021 to $177.1 million. On a year-to-date basis, NBEV increased 27% y-o-y to $546 million.

Operating profit for the 3QFY2021 grew 46% y-o-y to $248.7 million. However, on a year-to-date basis, operating profit fell 11% y-o-y to $579 million due to positive one-off items the previous year following the adoption of the RBC 2 framework in Singapore and the release of unallocated surplus in Malaysia.

See also: Trump wins Republican nomination, setting up rematch with Biden

Great Eastern reported non-operating losses of $4.6 million for the 3QFY2021, compared to a profit of $51.2 million the year before. On a year-to-date basis, the company chalked up non-operating profit of $245 million, compared to a loss of $136 million the previous year when it recorded mark-to-market losses amid unfavourable market conditions following the onset of the pandemic.

Great Eastern also recorded a loss from shareholders’ fund of $28.4 million for the 3QFY2021, compared to a profit of $74.9 million the year before. This brings year-to-date profit from shareholders’ fund of $73.8 million, a decline of 38% from $118.3 million the year before.

For more stories about where the money flows, click here for our Capital section

See also: OCBC posts record net profit of $7.02 billion for FY2023, up 27% y-o-y; plans final dividend of 42 cents

According to the company, the capital adequacy ratios of the Group’s insurance subsidiaries in both Singapore and Malaysia remain strong and well above their respective minimum regulatory levels.

“We have continued to build on the momentum from past months, achieving robust growth in our TWNS and NBEV for the year thus far,” says group CEO Khor Hock Seng.

“Our priority remains to build resiliency into our businesses amid current and evolving Covid-19 challenges,” he adds.

Shares in Great Eastern closed up 39 cents or 1.81% higher at $21.91 on Nov 1.

Photo: Albert Chua/The Edge Singapore

Highlights

Re test Testing QA Spotlight
1000th issue

Re test Testing QA Spotlight

Get the latest news updates in your mailbox
Never miss out on important financial news and get daily updates today
×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.