Great Eastern Holdings (G07) Q2 2024 earnings summary

Executive summary

• Profit attributable to shareholders rose 34% year-over-year to S$587.1 million for 1H-24, driven by higher insurance profits and strong investment gains.

• Total comprehensive income increased 85% to S$717.0 million, reflecting improved market conditions and mark-to-market gains.

• Interim dividend of 45 cents per share declared, payable on 29 August 2024, representing a 12.5% increase from the previous payout.

• Total Weighted New Sales (TWNS) increased 34% year-over-year to S$972.5 million, with strong momentum in Singapore and Malaysia.

• New Business Embedded Value (NBEV) grew 16% to S$338.9 million, reflecting robust sales.

Financial highlights

• Insurance revenue grew 9% year-over-year to $3,192.7 million, with life insurance contributing $2,976.7 million and non-life $216.0 million.

• Other investment revenue surged 43% to $2,321.0 million, mainly from mark-to-market gains.

• Profit from insurance business rose 22% to S$451.7 million, mainly due to higher Contract Service Margin and Risk Adjustment releases.

• Net insurance financial result was a loss of $3,091.4 million, mainly due to changes in fair value of underlying items and SGD depreciation.

• Earnings per share increased 35% to $1.24.

Outlook and guidance

• Sustained sales momentum in core markets and favorable investment market conditions expected to support continued growth.

• Management expects continued financial market volatility, impacting mark-to-market valuations and profitability.

• Company aims to maintain or increase dividend payouts, barring unforeseen circumstances.

• Focus remains on long-term, sustainable growth and delivering value to customers.