Great Eastern reports 4Q21 net profit fell 33 percent

Great Eastern building at Changi in Singapore; taken August 2018.Great Eastern building at Changi in Singapore; taken August 2018.

Great Eastern reported Tuesday its fourth quarter net profit fell 33 percent on-year to S$229.8 million on lower profit from the shareholders’ fund and as the insurance business profit declined. The group said it also had a one-off positive tax impact in the year-ago quarter.

The total weighted new sales (TWNS), which is a measure of the long-term profitability of new sales, for the three months ended 31 December fell 6 percent on-year to S$496.9 million, the insurer said in a filing to SGX. The decline was on lower sales in Singapore as single-premium sales fell, partially offset by higher growth in Malaysia and Indonesia, the filing said.

New business embedded value for the quarter rose 9 percent on-year to S$262.0 million on strong margins, Great Eastern said. 

In the quarter, the profit from the shareholders’ fund fell 93 percent on-year to S$17 million on fair losses in equities, the insurer said.

Full-year results

For the full year, Great Eastern reported its net profit rose 16 percent on-year to S$1.11 billion, on more favorable financial market conditions compared with 2020 and higher operating profit from the . 

TWNS for the year rose 28 percent on-year to S$1.97 billion, the insurer said. 

New business embedded value for the full year increased 21 percent from 2020 to S$808 million, the insurer said.

Great Eastern recommended a final dividend of 55 Singapore cents, for a total dividend for the year of 65 Singapore cents. In 2020, the final dividend was 50 Singapore cents, for a total of 60 Singapore cents for the year.

Read more details about the results.