Insurance group Great Eastern reported a 10.9% uptick for the first quarter of fiscal year 2023, a growth that has been attributed to the new Singapore Financial Reporting Standards (International) 17, known globally as IFRS17.
Under the new financial standard, Great Eastern reported earnings of $244 million, larger than the $220 million that it earned in the same period last year. It’s worth noting that the first quarter results for this year were the first impacted by the IFRS17 standards.
According to a report from The Edge Singapore, the accounting change, which took effect from Jan. 1, will affect the timing of profit recognition and initial shareholders’ equity without changing the way that the group operates.
Despite the larger profit margin for the quarter, the group saw total weighted new sales (TWNS) fall by as much as 22%, equivalent to $390.9 million, due to fewer sales from single premium plans. New business embedded value (NBEV), on the other hand, also fell by 11% YoY due to the lower TWNS.
While it did see lower figures in some areas, the capital adequacy ratios of the group’s subsidiaries in Singapore and Malaysia remained “strong.” Great Eastern group CEO Khor Hock Seng attributed this to the firm’s adaptability being a key driving factor.
“In the first quarter, we achieved margin improvements for our life business across all markets compared to the same period last year. Given our distribution capabilities, digital solutions and comprehensive suite of products, we remain confident about the long-term growth of the group,” he said.
Great Eastern’s first quarter results represent a good rebound from its 2022 financial results, when the insurance group posted losses in shareholder profits.
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