Great Eastern Holdings (G07) Q3 2024 earnings summary

Executive summary

• Profit attributable to shareholders rose 39% year-over-year to S$860.5m for the nine months ended September 2024, driven by strong insurance business, investment gains, and robust business execution.

• Total Weighted New Sales (TWNS) increased 19% year-over-year to S$1,363.3m, led by growth in Singapore and Malaysia and sustained sales momentum.

• New Business Embedded Value (NBEV) rose 13% year-over-year to S$515.8m, supported by higher sales and robust new business profitability.

• New product launches in Singapore included Great Wealth Advantage 4 and Prestige Legacy Index, targeting wealth accumulation and legacy planning.

• Total comprehensive income surged 145% year-over-year to S$1,319.5m, reflecting significant mark-to-market gains in equities and interest rate movements.

Financial highlights

• Third quarter profit attributable to shareholders was S$273.4m, up 52% compared to the same quarter last year.

• TWNS for the third quarter was S$390.8m, down 7% year-over-year, while NBEV for the quarter was S$176.9m, up 7% year-over-year.

• Profit from insurance business grew 17% year-over-year to S$638.1m, mainly due to higher Contract Service Margin and Risk Adjustment releases.

• Profit from shareholders' fund jumped 201% year-over-year to S$222.4m, reflecting strong investment performance and mark-to-market gains.

• Other comprehensive income swung to S$459.0m from a loss of S$78.0m in the prior year, driven by equity and interest rate gains.

Outlook and guidance

• Growth in core markets and channels is expected to continue supporting new sales and embedded value.

• Continued focus on rolling out new solutions to meet evolving customer needs and maintain leadership in Singapore and Malaysia.

• Confidence in further expanding the insurance franchise in the region under new leadership.

• Shift towards regular premium sales in Singapore may impact quarterly sales volatility.