Great Eastern Q2 earnings down 11% at S$248.2 million

[SINGAPORE] Insurer Great Eastern on Monday (Jul 28) posted an 11 per cent decline in net profit to S$248.2 million for its second quarter ended Jun 30, from S$280.4 million in the previous corresponding period.

The group attributed the decline to lower profit from its insurance business for the quarter.

For the six months ended June, net profit inched up 1 per cent to S$593.7 million from S$587.1 million in the year-ago period.

H1 earnings per share rose 1 per cent to S$1.25, from S$1.24 previously.

Total weighted new sales for Q2 stood at S$363.5 million, down 19 per cent from S$448.3 million on the year. New business embedded value rose 14 per cent to S$167.7 million from 146.5 million.

On a half-yearly basis, total weighted new sales slid 27 per cent to S$708.6 million, from S$972.5 million. H1 new business embedded value climbed 16 per cent to S$316.5 million from S$272 million.

As resolutions to facilitate resumption of trading in Great Eastern’s shares were passed at its extraordinary general meeting on Jul 8, the company will execute a bonus issue of up to 473.3 million bonus ordinary shares and/or Class C non-voting shares on or around Aug 19.

The bonus shares are expected to be allotted and issued before the record date of the interim dividend on Aug 28. Thus, the interim one-tier tax exempt dividend of S$0.25 per share for the financial year ending Dec 31, 2025, will apply to all shares on a post-bonus issue basis. This includes the bonus ordinary shares and Class C non-voting shares.

This is equivalent to an interim one-tier tax exempt dividend of $S0.50 per ordinary share on a pre-bonus issue basis, the insurer said.

Shares of Great Eastern have been suspended since July 2024.