Great Eastern profit falls 72% to S$102.9 million in third quarter
Key Facts
Great Eastern reported a 72% year-on-year decline in net profit for the third quarter ended September 30, 2026, to S$102.9 million, from S$372 million in the corresponding period a year earlier. The company attributed the decline to the negative impact of financial market movements on investment valuations and a one-off loss from the partial exit from Great Eastern Life Indonesia. The results therefore reflect two different factors, one linked to market performance and the other to the exit, rather than the transaction loss alone. The figures came as indicators of new insurance business remained mixed during the quarter. Total weighted new sales fell 3% to S$362.4 million, from S$373.1 million a year earlier.
Great Eastern completed the exit transaction on September 1 to comply with local regulatory requirements. After its completion, the company lost control of its Indonesian subsidiary, The Business Times reported. The group recorded a S$57.1 million loss on disposal of the investment. But this loss was largely offset by a S$52.6 million reclassification gain in other comprehensive income. The group said the overall impact on total comprehensive income was largely neutral. This accounting treatment shows that the recorded disposal loss did not pass through in full to the overall impact on comprehensive income.
By contrast, the value of new business embedded in the third quarter rose 14% year on year to S$208.2 million from S$182.2 million. The metric measures the value of new business according to figures reported by the company, and it grew despite a decline in weighted new sales over the same period. For the nine months ended September 30, net profit fell just 1% to S$952.4 million from S$965.7 million in the corresponding period a year earlier. Total weighted new sales also increased 9% year on year in the nine months. Singapore was the main contributor to this growth, while Malaysia also recorded an increase despite more subdued market conditions.
Great Eastern said its core insurance business remained resilient and continued to grow, while chief executive Greg Hingston said the weaker reported earnings did not change the strength of the business's operating fundamentals. The Business Times quoted the company as describing its core insurance business as having “remained resilient and continued to grow.” At the same time, the group expected investment conditions to remain challenging in the near and medium term. The company linked this outlook to geopolitical uncertainty and inflationary pressures. Before the release of its third-quarter business update, Great Eastern shares closed on October 30 at S$19.11, down 1.2%, or S$0.23.