Slide 1: Financial Results for Q2-16 and 1H-16 Supplementary Information
GREAT EASTERN HOLDINGS LIMITED Financial Results for Q2-16 and 1H-16 Supplementary Information 26 July 2016 Disclaimer: This material should be read as an overview of GEH’s current business activities and operating environment. It should not be solely relied upon by investors or potential investors
Slide 2: Overview of Q2-16 and 1H-16 Financial Results
Overview of Q2-16 and 1H-16 Financial Results Q2-16 Q2-15 ∆ 1H-16 1H-15 ∆ S$’m Total Weighted New Sales^ 245.7 199.3 +23% 466.7 402.0 +16% New Business Embedded Value* 105.1 85.1 +24% 188.9 168.7 +12% Operating Profit (net of tax)# from 134.6 132.2 +2% 255.0 282.9 -10% Insurance Business Non-Operati
Slide 3: Q2-16 Key Highlights
Q2-16 Key Highlights • Total Weighted New Sales (TWNS) for Q2-16 grew 23% from the same quarter last year to $245.7m, underpinned by higher sales from all distribution channels in both Singapore and Malaysia. Excluding the sales contribution from the Group’s investment in China, which ceased to be a
Slide 4: Total Weighted New Sales (TWNS) – By Market
Total Weighted New Sales (TWNS) – By Market TWNS for Q2-16 grew 23% from same quarter last year to S$245.7m: • Higher sales through both agency and bancassurance channels in Singapore (+30%) • Higher sales in Malaysia (+21%) +23% +16% 466.7 6.7 402.0 16.6 152.1 308.4 TWNS – By 129.6 268.4 12.1 245.7
Slide 5: Singapore TWNS – By Channel Mix
Singapore TWNS – By Channel Mix Singapore TWNS of S$157.1m for Q2-16 was 30% higher: • Higher sales from both agency and bancassurance channels, fuelled by strong single premium Participating sales. +30% +20% 307.9 10.9 255.8 11.2 Singapore TWNS – By 185.9 181.9 176.5 150.8 157.1 Channel 136.8 135.4
Slide 6: Malaysia TWNS – By Channel Mix
Malaysia TWNS – By Channel Mix TWNS in Malaysia of S$84.7m for Q2-16 was 21% higher: • Strong growth of agency channel +21% +17% 152.1 5.4 129.6 4.8 13.8 114.4 11.4 2.1 Malaysia TWNS – By 8.8 84.7 Channel 70.3 73.9 67.4 2.4 Mix (S$ m) 59.3 2.3 1.7 7.6 132.9 6.2 5.6 3.0 2.5 6.2 113.4 5.2 103.5 66.6 7
Slide 7: New Business Embedded Value (NBEV) - By Market
New Business Embedded Value (NBEV)- By Market Higher NBEV of S$105.1m for Q2-16 reflected a 24% growth, driven by sales growth. Q2-16 NBEV margin of 42.8% while comparable to Q2-15, showed a significant improvement over Q1-16 of 37.9%. NBEV 41.3% 42.7% 39.4% 42.8% 42.0% 40.5% 36.7% 37.9% Margin (%)
Slide 8: Breakdown of Profit from Insurance Business
Breakdown of Profit from Insurance Business Profit from insurance business was S$116.2m for Q2-16, 16% lower than the same quarter last year: • Higher unrealised losses from the widening of credit spreads and sharp decline of the long term interest rates. -40% -16% Breakdown of Profit from Insurance
Slide 9: Operating Profit from Insurance Business – by Fund
Operating Profit from Insurance Business – by Fund Operating Profit from Insurance Business of S$134.6 m for Q2-16 was 2% higher than same quarter last year: • Higher contribution from Malaysia business -10% +2% Operating Profit from insurance business (Net of tax) (S$ m) 8
Slide 10: Shareholders' Fund's Investments, Other Income and Expenses
Shareholders’ Fund’s Investments, Other Income and Expenses Profit from Shareholders’ Fund’s Investments was S$19.2m for Q2-16, lower than Q2-15 of S$180.3m, primarily due to the following: • Loss on disposal of Vietnam subsidiary of S$18.7m • Last year same quarter was boosted by substantial gain f
Slide 11: Group Profit Attributable to Shareholders
Group Profit Attributable to Shareholders Overall, profit attributable to shareholders of S$102.2m for Q2-16 was lower compared with the same period last year because of higher non-operating loss amid unfavourable financial market conditions and loss of S$18.7m on disposal of Vietnam subsidiary. Q2-
Slide 12: Thank You
Thank You 11