SINGAPORE (Oct 25): Great Eastern Holdings saw its earnings dip 4% to $205.1 million for the 3Q19 ended September, from $213.3 million a year ago.
Gross premiums fell 13% to $3.07 billion the quarter, compared to $3.54 billion in 3Q18.
The group attributes the decline to its product management strategy to optimise its product mix.
Net investment income decreased by 2% to $744.9 million in 3Q19, mainly due to lower dividend income, offset by higher interest income.
However, Great Eastern notes that operating profit from its insurance business jumped 24% to $179.0 million in 3Q19, on the back of improved contribution from the group’s Singapore and Malaysia businesses.
However, the group registered a non-operating loss of $31.8 million from it insurance business due to higher valuation of insurance contract liabilities as a result of a decline in the discount rate used to value these liabilities. The group had recorded a non-operating profit of $20.6 million a year ago.
As at end-September, cash and cash equivalents stood at $5.44 billion.
“The group’s agency force remains an important and core channel for us and we will continue to devote key resources to strengthen the agency channel and enhance its effectiveness,” says group CEO Khor Hock Seng.
“Coupled with our synergistic bancassurance partnership with OCBC Bank and advancement in our digital transformation, we remain on track to grow our business,” he adds.
As at 2.52pm, shares in Great Eastern are trading 8 cents higher at $21.80.
