Great Eastern Holdings (GEH), a prominent insurer based in Singapore, has reported a substantial 34% increase in profit attributable to shareholders for the first half of 2024, amounting to S$587.1 million (approximately $438.9 million). This marks a significant improvement from the corresponding period in 2023. The growth is attributed to higher profits from the insurance business and favorable investment performance of shareholders’ funds.
Strategic Financial Optimization
In the first half of 2024, GEH implemented strategic measures to optimize its capital and funding structure. This included issuing subordinated and medium-term notes through its subsidiaries in Singapore and Malaysia. These actions have enhanced the group’s return on equity, underscoring GEH’s proactive approach to financial management.
Growth in Sales and New Business Value
The company’s Total Weighted New Sales experienced a robust 34% growth, reaching S$972.5 million in 1H2024, driven by strong performance in the Singapore and Malaysia markets. Additionally, the New Business Embedded Value (NBEV) rose by 16% to S$338.9 million, reflecting the success of the group’s sales strategies and market expansion efforts.
Strong Capital Adequacy Ratios
GEH’s insurance subsidiaries maintained strong Capital Adequacy Ratios, well above the minimum regulatory requirements. This financial stability provides a solid foundation for continued growth and resilience against market fluctuations.
CEO’s Outlook and Strategic Focus
Group CEO Mr. Khor Hock Seng highlighted the robust performance in the second quarter, building on a strong start to the year. He attributed this success to the company’s disciplined business management and strategic initiatives. As GEH celebrates its 116th anniversary, it is introducing new products to meet growing demands for protection, wealth accumulation, and legacy planning. These include the “Great Bundle of Joy” and “Great Maternity Care 2” in Singapore, as well as a suite of prestige products targeting legacy planning.
Challenges and Future Outlook
Despite the positive financial results, Mr. Khor emphasized the need for vigilance in the face of dynamic and changing market conditions that could impact business and profits. GEH remains focused on achieving long-term sustainable growth, adapting to market changes while continuing to deliver value to its stakeholders.
Great Eastern: Push forward
GEH’s strong financial performance in the first half of 2024 reflects effective strategic management and a proactive approach to market demands. The company’s continued focus on innovation and customer needs positions it well for sustainable growth, despite potential market uncertainties.