Great Eastern profits crashed by 29% to $1b in FY18

Operating profit growth from Insurance Business countered its decline.

Great Eastern Holdings’ profit attributable to shareholders decreased by 29% in FY18 mainly due to lower valuation of investments as a result of unfavourable financial market conditions in 2018, particularly in 4Q18, the company said in a statement.

Operating profit from Insurance Business continued its good growth momentum, it added, underscoring the strength of their core business fundamentals, achieving 5% growth for 4Q18 and 4% for FY18. This was driven by both the Singapore and Malaysia Insurance Business.

The group’s total weighted new sales for 4Q18 and FY18 dropped 30% and 6% respectively compared to the same period last year. The decrease in 4Q18 as compared to 4Q17 was mainly attributed to a product campaign in 4Q17 which was very well received by the market.

Correspondingly, new business embedded value dropped 7% and 3% respectively in 4Q18 and FY18 compared to same period last year.