The Singapore-based life insurance company saw stable profit amid a deterioration in sales in the first quarter as a result of stiff competition from banks and money market investments.
In the first quarter, Great Eastern saw a 22 percent drop in what it calls total weighted new sales, which combines the performance of single premium revenue and regular premiums, according to an announcement distributed on Friday.
This deterioration was due to falling sales of single premium plans partly offset by improving performance in regular premiums. Despite that, shifts in its product mix prompted an increase in margins.
The firm indicated that the market was subject to strong competition from banks and money market investments.
Higher Profit
Profit also increased, although the figures were not directly comparable as it had adopted new accounting rules and had not yet restated the year-earlier figures. It will release restated comparisons when disclosing performance for the first half.
Group CEO Khor Hock Seng said the company remains confident about its long-term growth given its distribution capabilities, digital solutions, and comprehensive range of products.
The capital adequacy ratios of its insurance subsidiaries in Singapore and Malaysia remain at strong levels and significantly surpass minimum regulatory requirements.
