Great Eastern’s Q1 profit halved due to less favorable financial market conditions
SINGAPORE (THE BUSINESS TIMES) – Insurance company Great Eastern Holdings said its net profit fell to $220 million for its first quarter ended March 31, 50% below the $437.6 million of the same period a year ago.
This was due to lower valuation of investments resulting from less favorable financial market conditions during the quarter, leading to lower mark-to-market valuation gains, OCBC Bank’s insurance arm said Thursday (April 28th).
Non-operating profit for the quarter fell 73% to $58.9 million from $215.7 million a year ago due to lower mark-to-market earnings.
The insurer also recorded a loss of $30.9 million on the shareholders’ fund, against a profit of $46.4 million a year ago, due to a loss in the market value of the shares. and collective investment schemes.
Meanwhile, operating profit from its insurance business rose 6% to $191.4 million in the quarter from $181.3 million a year ago, due to in-force business growth.
Higher sales in Singapore pushed its total weighted new sales up 32% in the quarter to $505.3 million from $381.9 million a year earlier, although this was partially offset by a lower sales in Malaysia in a weaker economic climate.
Due to lower contributions from Malaysia, the embodied value of its new venture fell 3% to $191.3 million from $198.2 million a year ago.
Commenting on the results, Great Eastern Group Chief Executive Khor Hock Seng said the group’s performance remained resilient despite the challenging business environment and financial and capital market volatility, with its insurance business showing good momentum. growth in operating profit.
He expects the trading landscape to remain difficult in the near term.
Great Eastern shares were trading down 14 cents, or 0.7%, at $20.36 as of 10:06 a.m. after the earnings release.