The board has recommended a final one-tier tax exempt dividend of 40 cents per ordinary share, payable on May 17. Photo: Bloomberg

Great Eastern Holdings, a member of the OCBC Group, has reported earnings of $774.6 million for FY2023 ended December, up 27% y-o-y.

This is driven by favourable investment performance in its Singapore life business and shareholders fund. The profitability of its insurance business is healthy, though dampened by higher medical claims.

The group’s FY2023 total weighted new sales (TWNS) for the FY2023 decreased 12% against the previous year, reflecting lower single premium sales in the Singapore market. The inverted Singapore dollar yield curve has made shorter-term interest yielding investments more appealing than single premium products to some customers.

The lower sales in single premium products were partially offset by growth in regular premium sales, particularly in protection and whole life plans through the group’s core distribution channels. On the back of lower sales, Great Eastern’s FY2023 new business embedded value (NBEV) fell by 11% y-o-y.

The board has recommended a final one-tier tax exempt dividend of 40 cents per ordinary share, payable on May 17.

Including the interim one-tier tax exempt dividend of 35 cents per ordinary share paid in August 2023, the total dividend for FY2023 would amount to 75 cents per ordinary share.

Although the operating climate remained challenging in 2023, the group stayed focused on its core strategies of improving customer experience and developing new products to meet the evolving wealth and protection needs of our customers across the region, says group CEO Khor Hock Seng.

“Moving ahead, we will continue to look at innovative ways to enhance our service level and enrich customer experience through digitalisation and analytics. We have built a strong foundation which positions us well to continue to serve our customers, and deliver profitable growth and long-term sustainable value to our shareholders,” he adds.

Shares in Great Eastern closed 5 cents lower or 0.27% down on Feb 23 at $18.24.

Source: TheEdge - 26 Feb 2024