Improved market conditions helped ship earnings hovering at Great Eastern Holdings within the second quarter.
It reported internet profit of $297.5 million for the three months to June 30, 76 per cent larger than the $169 million of a 12 months earlier.
This was on account of larger working profit and a rise within the valuation of investments because of higher monetary market conditions throughout the quarter, the insurance coverage arm of OCBC Bank mentioned yesterday.
GE mentioned working profit internet of tax from the insurance coverage enterprise rose 16 per cent to $185.7 million whereas non-operating profit was $35 million, reversing from a lack of $23.7 million.
Profit internet of tax from shareholders’ fund got here in at $85.three million, greater than double the $36.6 million within the earlier 12 months.
Total weighted new gross sales fell four per cent to $286.1 million on the again of restricted gross sales actions, notably from the bancassurance channel.
New enterprise embedded worth was down 28 per cent to $109.1 million, from $151.four million a 12 months in the past, due primarily to decrease gross sales in Malaysia.
Net profit for the primary half fell 35 per cent to $331.four million amid unfavourable market conditions within the first quarter, GE mentioned.
Earnings per share was 70 cents for the primary half, down 35 per cent from $1.08 within the previous 12 months.
Strong development within the Singapore enterprise despatched complete weighted new gross sales for the primary half up 7 per cent to $584.9 million.
Meanwhile, profit internet of tax from shareholders’ fund declined 73 per cent to $43.four million whereas new enterprise embedded worth fell 10 per cent to $235.2 million.
The board declared an interim dividend of 10 cents a share for the monetary 12 months ending Dec 31, 2020. This shall be paid on Aug 26, after books closure on Aug 14.
Group chief govt Khor Hock Seng mentioned gross sales in GE’s core markets within the second quarter had been affected by tighter motion restrictions applied amid the coronavirus pandemic.
The bancassurance channel was considerably impacted as gross sales actions, which had been largely performed at financial institution branches, had been curbed.
However, GE’s company power right here tailored swiftly to working digitally, serving to cushion the influence, famous Mr Khor.
GE expects the financial outlook to be difficult, with volatility within the monetary markets and low rates of interest, which might influence efficiency.
Great Eastern shares closed down 0.four per cent at $19.45 yesterday.