Great Eastern Holdings Limited: FY-25 Financial Results Analysis
Great Eastern Holdings Limited (“Great Eastern”) has released its financial results for the full year ended 2025 (FY-25), providing insights into its performance across key markets (Singapore, Malaysia, Indonesia, and Brunei) and business segments. This article presents a structured analysis of the reported financials, trends, and management actions, offering investors a clear view of the company’s trajectory.
Key Financial Metrics and Performance Table
| Metric |
FY-25 |
FY-24 |
YoY Change |
| Total Weighted New Sales (TWNS, S\$’m) |
1,535.4 |
1,796.0 |
-15% |
| New Business Embedded Value (NBEV, S\$’m) |
739.7 |
621.5 |
+19% |
| Profit from Insurance Business (S\$’m) |
816.2 |
730.7 |
+12% |
| Profit from Shareholders’ Fund (S\$’m) |
390.9 |
264.6 |
+48% |
| Group Profit Attributable to Shareholders (S\$’m) |
1,207.1 |
995.3 |
+21% |
| Other Comprehensive Income (OCI, S\$’m) |
284.2 |
207.2 |
+37% |
| Total Comprehensive Income (TCI, S\$’m) |
1,491.3 |
1,202.5 |
+24% |
| Final Dividend per Share (cents) |
30 |
Not stated |
– |
| Total Dividend per Share (cents) |
55 |
Not stated |
– |
Business Segment and Market Performance
- TWNS (Total Weighted New Sales): Declined 15% YoY, mainly due to lower single premium sales in Singapore. Malaysia also saw subdued demand due to challenging market sentiment. However, there was a 13% YoY increase in Singapore TWNS in 4Q-25, driven by agency and banca channels.
- NBEV (New Business Embedded Value): Grew 19% YoY, with particularly strong performance in Singapore’s core channels. Malaysia’s new business profitability was stable despite challenging conditions, reflecting disciplined pricing and focus on quality business.
- Profit from Insurance Business: Up 12% YoY, attributed to steady business growth and improved experience variance, partially offset by a higher loss component from medical business in Singapore and Malaysia.
- Profit from Shareholders’ Fund: Jumped 48% YoY, reflecting favorable market conditions and higher investment gains from both equity and fixed income portfolios.
- Embedded Value (EV): Increased by 11.5%, driven by business growth and strong investment performance.
- Comprehensive Equity (CE): Up 6.7% YoY, bolstered by underlying business growth and investment profits, offset by a decrease in net CSM due to uncertainties in interest rates (Singapore) and medical claims (Malaysia).
Dividends
The Board has recommended a final one-tier tax exempt dividend of 30 cents per Ordinary Share and Class C Non-Voting Share, payable on 6 May 2026. The total dividend for FY-25 amounts to 55 cents per Ordinary Share and Class C Non-Voting Share.
Historical Performance Trends
- Profit from both insurance and shareholders’ funds has shown strong YoY growth, reflecting robust investment returns and continued earnings from the in-force portfolio.
- While new sales (TWNS) declined, the improved product mix and disciplined business focus have led to higher new business profitability (NBEV).
- Investment gains, particularly in favorable market conditions, were a key driver of the improved bottom line.
Macroeconomic and Market Environment
- Singapore: Lower single premium sales affected overall TWNS, though there was a notable rebound in 4Q-25.
- Malaysia: Market sentiment remained subdued, affecting insurance demand, but the business remains focused on strengthening fundamentals and is well positioned for future opportunities.
- Across markets, fluctuations in interest rates and medical claims development present ongoing challenges.
Events and Risks
- No mention of natural disasters, legal disputes, divestments, IPOs, asset sales, or share buybacks.
- No disclosure of directors’ pay, exceptional earnings/expenses, or unusual fund flows.
- No chairman’s statement was included in the provided report.
Conclusion and Investment Recommendation
Overall Assessment: Great Eastern Holdings Limited delivered strong profitability growth in FY-25, despite a decline in new sales volumes. The company’s focus on high-quality business, favorable investment conditions, and disciplined risk management have resulted in robust net profit and comprehensive income growth. Key risks remain in the form of market volatility, fluctuating interest rates, and medical claims.
For Current Holders: The solid dividend payout, strong earnings, and demonstrated ability to navigate market challenges suggest that existing investors may consider holding their position, especially as the company is well capitalized and remains focused on long-term value creation.
For Potential Investors: While the drop in new sales warrants caution, the underlying profitability, strong investment performance, and management’s prudent approach may present an attractive entry point for investors seeking exposure to the insurance sector with a proven track record of earnings resilience.
Disclaimer: This analysis is based solely on the information provided in the FY-25 financial report of Great Eastern Holdings Limited. It does not constitute investment advice. Investors should consult their own financial advisers before making investment decisions.
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