Great Eastern to maintain capitalisation, profitability after failed privatisation

It should maintain its capitalisation even after the proposed share issuance.

Great Eastern Holdings (GEH) is expected to maintain its healthy capitalization and profitability, remaining unaffected from OCBC’s failed bid to privatize it.

Minority shareholders of GEH voted against OCBC’s proposal to privatize the insurer in July 2025. OCBC’s ownership of GEH will remain at 93.72%, although its voting shareholding will likely be revised as minority shareholders select either bonus ordinary shares or non-voting shares.

This will likely restore GEH's free float and allow the insurer to resume trading.

“We expect the insurer's robust capitalization to remain intact after the proposed share issuance,” S&P said in a commentary published on 11 July.

In Q1 2025, GEH’s profit attributable to shareholders was S$345.5m, a 13% year-on-year growth on fair value gains from bonds and improving insurance business profits.

OCBC's continued majority ownership of GEH underscores the bank's long-term commitment and support for the insurance group, S&P said.

“OCBC will continue to support the insurer’s business strategy and benefit from synergies as part of its "One Group" approach,” S&P said.