Great Eastern Holdings announced 28% y-o-y growth in net profit in FY2024 but 4QFY2024 profit declined by 14% y-o-y due to lower single premium sales.

Great Eastern Holdings' (GEH) full-year FY2024 profit attributable to shareholders rose 28% y-o-y to $995.3 million.

However, 4QFY2024's profit attributable to shareholders fell by 14% to $134.8 million.

The increase in profit attributable to shareholders in FY2024 ended Dec 31, 2024 was driven mainly by improved expense variances from effective cost management initiatives and improved claims experience from individual life business, as well as favourable investment performance from the shareholders’ fund.

The fourth quarter saw several developments in the medical insurance business from both Singapore and Malaysia. These resulted in the lower 4QFY2024 profit. GEH says it is assessing the situation and actively exploring possible actions to address these rising costs. 

Total weighted new sales (TWNS) growth for FY2024 rose by 8% y-o-y. Both Singapore and Malaysia continued to grow, driven by their agency channels.

However, 4QFY2024 TWNS decreased 16% y-o-y reflecting lower single premium sales in the Singapore market.

In 4QFY2024, GEH wrote down its NBEV by $91.7 million reflecting revised actuarial assumptions following the annual review exercise at the end of the year.

Excluding this impact, 4QFY2024 NBEV would have been $197.4 million, 13% lower than the same period last year due mainly to the lower TWNS.

Similarly, for FY2024, excluding this impact, NBEV would have been $713.2 million, an increase of 4% y-o-y. driven by higher TWNS.

The insurance group declared a final dividend of 45 cents, taking total dividends for the year to 90 cents. The company is hoping to maintain annual dividends at no lower than the previous year's dividend. 

"Addressing the growing demand for wealth management, we broadened our products in Singapore and Malaysia. In Singapore, we introduced an investmen-tlinked legacy plan and a single-premium Indexed Universal Life plan, while in Malaysia, we enhanced our multi-generation wealth transfer solution. These additions provide customers with more choices tailored to different risk preferences," says new group CEO Greg Hingston.

Great Eastern remains the leading life insurance provider in its core markets of Singapore and Malaysia serving over 16.5 million policyholders across the region, including 12.5 million from government schemes in Singapore and Malaysia, Hingston adds.