SINGAPORE – OCBC Bank’s insurance arm Great Eastern posted a 13 per cent drop in profit to $337.4 million for its second-half financial year ended Dec 31, from $385.9 million for the year-ago period.
This was mainly led by a 25 per cent higher income tax expense of $179.2 million, based on financial statements released on Feb 26.
Earnings per share for the half-year period stood at 71 cents, down 13 per cent from 82 cents a year earlier.
The board proposed a final dividend of 40 cents per share, which will be payable on May 17, upon shareholder approval at the annual general meeting on April 25. The transfer books and the register of members of Great Eastern will be closed from 5pm on May 2 to May 3 to determine the dividend entitlements.
Including the interim dividend of 35 cents per share paid in August 2023, the total dividend for financial year 2023 would amount to 75 cents a share, higher than 65 cents per share in financial year 2022.
For the 2023 financial year, its profit increased by 27 per cent to $774.6 million, driven by investment performance in the Singapore life business and shareholders’ fund.
“Profitability of our insurance business is healthy, though dampened by higher medical claims,” said the group.
It also highlighted a steady growth in new customer count, with the total new customer base growing by more than 400,000 in the whole year.
Total weighted new sales for the year fell 12 per cent to $1.7 billion compared with financial year 2022, reflecting lower single-premium sales in the Singapore market.
This was because the inverted Singapore dollar yield curve made shorter-term interest-yielding investments more appealing than single-premium products, Great Eastern noted.
“Lower sales in single-premium products were partially offset by growth in regular premium sales, particularly in protection and whole life plans through the group’s core distribution channels.”
The group’s new business embedded value for the year declined by 11 per cent to $762.1 million, led by lower sales on the whole.
Shares of Great Eastern closed 31 cents down, or 1.7 per cent, to $17.93 on Feb 26. THE BUSINESS TIMES
