SINGAPORE – Great Eastern posted a 52 per cent year-on-year increase in net profit to $273.4 million for the third quarter ended September, from $180.2 million in the previous corresponding period.
This was driven by contributions from its insurance business and favourable investment performance from shareholders’ funds, said OCBC Bank’s insurance arm on Nov 6 in a business update.
The group’s new business embedded value amounted to $176.9 million, up 7 per cent on the year from $165.1 million. Total weighted new sales for the third quarter fell 7 per cent at $390.8 million, from $419.4 million previously.
For the nine-month period, total weighted new sales rose 19 per cent on the year at $1.4 billion, and new business embedded value rose 13 per cent to $515.8 million.
The better performance came amid sustained sales momentum in Singapore and Malaysia, said Great Eastern.
Net profit for the nine-month period was up 39 per cent on the year at $860.5 million.
Great Eastern said the capital adequacy ratios of its insurance subsidiaries for the quarter “remain strong and well above their respective minimum regulatory levels”.
Commenting on the latest set of results, group chief executive Greg Hingston said he viewed the sustained growth as a testament to the effectiveness of the insurer’s business strategies and approach in managing the business.
Shares of Great Eastern have been suspended from trading since July 15, when the number of shares in public hands dipped below the 10 per cent free float threshold after OCBC’s offer for the insurer’s shares closed. THE BUSINESS TIMES