News Asia26 Feb 2025

Great Eastern turns over higher profit for FY2024 despite challenging conditions

| 26 Feb 2025

In its financial results for FY2024, Great Eastern reported an 8% increase in total weighted new sales (TWNS) to hit S$1.8bn ($1.34bn), up from $1.7bn in FY2023 due to continued growth momentum in operations in Singapore and Malaysia. The majority of the company's distribution was driven by its agency channels in these markets.

In Singapore, TWNS grew on a y-o-y basis mainly due to strong performance from the agency channel, the company stated.

“TWNS in 4Q2024 contracted when compared against the same period last year primarily due to lower single premium sales over the quarter this year following the shift towards regular premium sales,” the company said. TWNS toppled 25% from S$306m to S$228.9m between 4Q2023 to 4Q2024.

The increase of TWNS in Malaysia was driven by growth in the agency channel, as well.

TWNS in 4Q2024 reduced compared to the same period last year mainly due to market dampened uncertainty sentiment by in the pending changes to the medical sector following the probe into rising cost of medical insurance,” the company said. TWNS fell 1% between S$196.4m to S$193.7m.

In both markets, TWNS fell from S$514.1m in 4Q2023 to S$432.7m in 4Q2024.

According to Great Eastern group CEO Greg Hingston, the company “has maintained a consistently robust financial performance in 2024 due to steady business growth from expanding our customer-centric offerings, effective cost management initiatives and improved claims experience from individual life business”.

Mr Hingston also noted that in addressing the growing demand for wealth management, the company broadened products in Singapore and Malaysia.

“These additions provide customers with more choices tailored to different risk preferences,” he said.

However, profits were also impacted by recent developments in the medical insurance business environments in core markets, the company also stated.

Despite these rising healthcare demands, plans have evolved to carry features that lead to more conscious consumption among customers, while offering greater flexibility and coverage options, Mr Hingston stated.

Capital adequacy ratios of insurance subsidiaries also remained strong and well above respective minimum regulatory levels.

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