Great Eastern Q4 profit falls 14% to S$134.8M due to medical insurance provisions

SINGAPORE: Great Eastern’s net profit for the fourth quarter fell 14 per cent to S$134.8 million from S$157.2 million a year ago, primarily due to provisions for its medical insurance business, the insurer said.

According to The Business Times, the insurer’s Group CEO Greg Hingston said that while the rest of the business “performed very well”, provisions were necessary for its medical insurance business. The provisions were related to changes in Singapore’s MediShield Life scheme, which will raise premiums by up to 35 per cent starting April 2025, increase claim limits, and expand coverage, as announced in October last year.

The insurer also noted that several developments in its medical insurance business in both Singapore and Malaysia contributed to Q4’s lower profit.

In Malaysia, Mr Hingston explained that the central bank’s new rules affected its Q4 profit and prompted an adjustment to the insurer’s contractual service margin (CSM), which reflects expected future earnings from policies.

Bank Negara’s new rules limit premium increases to 20 per cent per year, with a cap of 10 per cent for 80 per cent of policyholders. For those over 60 on basic plans, premiums will be set at the lowest level.

Mr Hingston noted that market sentiment in Malaysia “softened to some degree”, particularly in December, but still, the insurer outperformed in the country, as its market share grew and productivity in its agency business improved. /TISG

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