Great Eastern Holdings Limited · SGX:G07
Great Eastern — Shareholder Meeting (April 2024)
29 slides from Great Eastern's shareholder meeting presentation, Apr 25, 2024
Slide 1: Annual General Meeting announcement
REPL::ANNUAL GENERAL MEETING::VOLUNTARY Issuer & Securities Issuer/ Manager GREAT EASTERN HOLDINGS LIMITED Security GREAT EASTERN HLDGS LTD - SG1I55882803 - G07 Announcement Details Announcement Title Annual General Meeting Date &Time of Broadcast 25-Apr-2024 19:43:48 Status Replacement Announcement
Slide 2: Event dates, venue and attachments
Additional 25 April 2024 - Please refer to the announcement on (i) the outcome of the Twenty-Fifth Text AGM and (ii) the Audit Committee. Event Dates Meeting Date and Time 25/04/2024 15:00:00 Response Deadline Date 22/04/2024 15:00:00 Event Venue(s) Place Venue(s) Venue details Meeting Venue 1 Picke
Slide 3: All resolutions passed at the AGM
GREAT EASTERN HOLDINGS LIMITED Incorporated in the Republic of Singapore (Company Registration No.: 199903008M) _____________________________________________________________________________ 1. ALL RESOLUTIONS PASSED AT THE ANNUAL GENERAL MEETING HELD ON 25 APRIL 2024 2. AUDIT COMMITTEE _____________
Slide 4: Voting results continued
Total number For Against of shares Number of As a percentage Number of As a percentage represented by Resolution number shares of total number shares of total number votes for and and details of votes for and of votes for and against the against the against the relevant resolution resolution resolut
Slide 5: Good corporate governance practices: voluntary abstentions
(d) To demonstrate good corporate governance practices: (i) the Directors who seek re-election voluntarily abstained from voting their respective holdings of shares in respect of their own re-election. Mr Ng Chee Peng, Mr Lee Kok Keng Andrew, Mr George Lee Lap Wah, Mr Tam Chee Chong, Dr Chong Yoke S
Slide 6: GEH Annual General Meeting April 2024
GEH Annual General Meeting 25 April 2024 Great Reach Eastern | for Great
Slide 7: Overview of Great Eastern Group
Overview of Great Eastern Group > 16 million > SGD 16 billion Customers Gross Premium > SGD 100 billion AA- Total Assets S&P Global Ratings for the last 14 years 2
Slide 8: FY2023 Key Financial Metrics
FY2023 Key Financial Metrics Profit Attributable to Shareholders New Business Embedded Value (SGD’ millions) (NBEV) (SGD’ millions) 610.0 774.6 860.4 682.8 2022 2023 2022 2023 3
Slide 9: Thank You
Thank You
Slide 10: Embedded values – Factors to consider
Embedded values – Factors to consider Richard Holloway Managing Director, Head Life Insurance Consulting, South East Asia & India, Life 25 April 2024
Slide 11: Components of Embedded Value / Appraisal Value
Components of Embedded Value / Appraisal Value Value of in-force Net Asset Value Embedded business (NAV) Value (VIF) Note that the Embedded Value reflects the value from business written to date (as at the valuation date). The NAV reflects the surplus assets in a Company that can be attributable to
Slide 12: Value of in-force business
Value of in-force business A calculated value, or metric. Widely used in the life insurance sector. Value to shareholders of future profit expected from the run-off the portfolio of business in-force as at the date of assessment. A function of underlying assumptions: ▪ Economic assumptions – Investm
Slide 13: Various embedded value reporting bases have emerged
Various embedded value reporting bases have emerged Examples Traditional Embedded value most commonly adopted in Asia Pacific. Traditional Embedded Value European Embedded Value Market consistent Embedded (TEV) (EEV) Value (MCEV) ABI Guidance 2001 Introduced in May 2004 by Introduced in June 2008 by
Slide 14: Observations on methodology and assumptions
Observations on methodology and assumptions Embedded value methodologies Assumptions Perception ▪ Notwithstanding the various standards which • Some assumptions can be on the optimistic side, • These points can contribute to a market exist, there are a very wide range of for example allowances for e
Slide 15: Other Observations
Other Observations Embedded value as a metric Listed companies Disclosures (in some markets) ▪ Nevertheless, EV is an accepted way to judge ▪ For listed companies analysts often compare ▪ Embedded value can be a very useful value, and give comparators vs other Price to Embedded Value (P/EV). Price w
Slide 16: Asian Companies
Asian Companies Limited amount of disclosure of EV for Asian companies Price-to-Embedded Value Milliman Report – 2022 Most insurers are trading below 1.0x of P/EV, except for AIA and several insurers in India. Source: Milliman 2022 Embedded Value Results: Asia 7
Slide 17: Price can be more volatile for traded stocks
Price can be more volatile for traded stocks Prudential & AIA recent P/EV ratio – JP Morgan publication P/EV ratio For the more actively traded shares of Prudential and AIA, the stock price can be seen to move in line with external events. 8
Slide 18: Trading volume: Asian examples
Asian examples Trading volumes vary Share price Volume (shares traded) GE SP Prudential 30 125,000,000 2,000 125,000,000 105,000,000 105,000,000 25 Trading volume Trading volume 1,500 85,000,000 Share price 85,000,000 Share price 20 65,000,000 65,000,000 15 1,000 45,000,000 45,000,000 10 500 25,000,
Slide 19: UK/EU market
UK/EU market We show the ratio of market 0% 20% 40% 60% 80% 100% 120% 140% capitalisation to Group Own Funds for a Unipol number of the biggest insurance groups SCOR in the UK and EU for year-end 2022 Phoenix (year-end 2023 data is not available yet). NN Group [In Europe Solvency 2 Own Funds is ofte
Slide 20: India P/EV multiples
India P/EV multiples Indian IPOs commenced in 2016; LIC more recent but a very mature company (trading with P/EV <1) Estimated EV Multiple 11
Slide 21: Conclusions
Conclusions ▪ GEH is not alone in having with a P/EV of less than one, a trait that is exhibited my more mature life insurance companies, globally. ▪ EV can be calculated using a variety of methodologies and assumptions which makes comparison of EV across companies somewhat challenging. ▪ EV has bee
Slide 22: Reliances and Limitations
Reliances and Limitations Usage and distribution Reliances • We have prepared this Presentation for delivery at the Annual General Meeting of • In preparing this Presentation we have relied upon certain information provided by Great Eastern Holdings to be held on 25 April 2024. GEH including informa
Slide 23: Thank You
Thank You Richard Holloway richard.holloway@milliman.com
Slide 24: GEH Annual General Meeting April 2024
GEH Annual General Meeting 25 April 2024 Great Reach Eastern | for Great
Slide 25: Disclaimer
Disclaimer Great Eastern Holdings Limited and its related corporations (collectively, “Great Eastern”) accept no liability whatsoever with respect to the use of, or reliance upon, any information, statement or opinion contained in or omitted from this document. Various information presented in this
Slide 26: Price-to-Book
1. Price to-Book Most companies with valuations below book, particularly those in real estate sector Name Market Cap (SGD bn) Price-to-Book (P/B) Hong Kong Land 9.7 0.2 REAL ESTATE Frasers Property 3.3 0.3 Singapore Land 2.6 0.3 Suntec REIT 3.1 0.5 Paragon REIT 2.3 0.8 Wilmar International 21.0 0.8
Slide 27: GEH Share Price (SGD) vs P/EV
2. GEH Share Price (SGD) vs P/EV * GEH shares peaked at 19 April 2018 with closing price of S$ 31.59 30.0 4.00 27.7 24.8 3.50 25.0 24.0 21.8 3.00 20.2 20.3 20.0 20.2 20.0 18.5 18.3 17.8 17.6 2.50 17.0 16.6 15.6 15.7 15.0 13.5 2.00 12.6 1.50 10.0 9.1 P/EV 1.00 5.0 1.43 1.25 1.03 1.04 1.07 0.50 0.0 0.
Slide 28: Dividend Yield
3. Dividend Yield 8.4% Among insurers in Asia, Great Eastern’s dividend yield is not low. 5.1% 4.4% 4.2% 3.4% 3.0% 2.2% 2.3% 1.9% 0.3% 0.2% Ping An China Life AIA Group Prudential Plc China Pacific Fubon Cathay Life Insurance SBI Life Dai-Ichi Life Great Eastern (HK) (HK) Insurance Financial Financi
Slide 29: Thank You
Thank You
Great Eastern Holdings — Shareholder Meeting (April 2024) on 6ix