Great Eastern Holdings (G07) Q4 2024 earnings summary

Executive summary

• Profit attributable to shareholders rose 28% year-over-year to S$995.3 million, driven by higher insurance business profit, improved expense management, better claims experience, and strong investment performance.

• Total Weighted New Sales (TWNS) increased 8% year-over-year to S$1,796.0 million, led by growth in core markets and agency channels in Singapore and Malaysia.

• New Business Embedded Value (NBEV) declined 9% year-over-year to S$621.5 million, impacted by revised actuarial assumptions and lower single premium sales in Singapore.

• Board recommended a final dividend of 45 cents per share, bringing FY-24 total to 90 cents per share, a 20% increase year-over-year.

• Total comprehensive income increased 6% year-over-year to S$1,202.5 million.

Financial highlights

• FY-24 profit attributable to shareholders reached S$995.3 million, up from S$774.6 million in FY-23.

• 4Q-24 profit attributable to shareholders was S$134.8 million, down 14% from S$157.2 million in 4Q-23, reflecting medical insurance developments.

• TWNS for FY-24 was S$1,796.0 million, up 8% year-over-year; 4Q-24 TWNS fell 16% year-over-year due to lower single premium sales.

• NBEV for FY-24 was S$621.5 million, down 9% year-over-year; excluding S$91.7 million actuarial write-down, NBEV would have increased 4%.

• Other comprehensive income fell 43% to S$207.2 million, mainly from bond mark-to-market losses.

Outlook and guidance

• Plans to maintain progressive dividends, with FY-24 total dividend proposed at 90 cents per share.

• Growth in underlying business expected to continue, though medical insurance sector changes and higher discount rates may impact future results.

• Focus on expanding customer-centric offerings and sustainable value creation in core markets.

• Continued product innovation in wealth management and healthcare to address evolving customer needs.