GREAT EASTERN HOLDINGS REPORTS 3QFY2022 EARnings OF $278 MIL, 30% HIGHER YoY

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Great Eastern Stock Fair Value – The company reported 3QFY2022 earnings of $278 million, 30% higher YoY, driven by higher profit from its insurance business. This was despite lower investment income and higher expenses. The company’s insurance business saw higher premiums and improved profitability, driven by growth in Singapore and Indonesia.

Great Eastern ($SGX:G07)’s investment portfolio also performed well, despite lower interest rates. Looking ahead, Great Eastern remains committed to delivering strong financial results and executing its growth strategy. The company is well-positioned to capitalize on opportunities in the region and continue delivering value to shareholders.

Earnings

In the latest earnings report for the quarter ending June 30, GREAT EASTERN HOLDINGS reported total revenue of $278 million, a 30% increase year-on-year. Looking at the bigger picture, GREAT EASTERN’s total revenue has decreased from $21.5 billion to $14.8 billion over the last three years. However, the company has managed to maintain profitability, with net income coming in at $0.9 billion over the same period. Overall, it was a strong quarter for GREAT EASTERN HOLDINGS, with the company reporting solid growth despite the challenging economic environment.

Share Price

The company attributed the strong showing to higher new business growth and higher investment income. shares of Great Eastern closed at SG$18.2 on Wednesday, up 0.7% from the previous day’s close of SG$18.0.

VI Analysis – Great Eastern Stock Fair Value

Company fundamentals are important indicators of a company’s long-term potential. The intrinsic value of a company’s shares is one way to measure this potential. The VI app makes it easy to calculate the intrinsic value of GREAT EASTERN shares.

Based on the company’s current share price, the app estimates the intrinsic value of GREAT EASTERN shares to be around SG$21.8. This means that the stock is currently undervalued by 16%.

VI Peers

The company offers a range of life insurance products and services in Singapore, Malaysia, Indonesia, China, and Hong Kong. Great Eastern Holdings Ltd is a subsidiary of OCBC Bank. Mercuries Life Insurance Co Ltd is a life insurance company headquartered in Taiwan. The company offers a range of life insurance products and services in Taiwan, China, Hong Kong, and Macau. Genworth Financial Inc is a life insurance company headquartered in the United States. The company offers a range of life insurance products and services in the United States, Canada, Australia, New Zealand, and the United Kingdom. CIG Pannonia Life Insurance OJSC is a life insurance company headquartered in Hungary. The company offers a range of life insurance products and services in Hungary, Romania, Slovakia, and the Czech Republic.

– Mercuries Life Insurance Co Ltd ($TWSE:2867)

Mercuries Life Insurance Co Ltd has a market cap of 17.2B as of 2022. The company has a Return on Equity of -13.78%. Mercuries Life Insurance Co Ltd is a life insurance company. The company offers a range of life insurance products, including term life, whole life, and universal life insurance.

– Genworth Financial Inc ($NYSE:GNW)

Genworth Financial Inc is a holding company, which engages in the provision of insurance, investment, and mortgage solutions. It operates through the following segments: Insurance, Mortgage Insurance, Long-Term Care Insurance, and Corporate and Run-Off. The Insurance segment provides protection products, including life insurance, fixed annuities, and long-term care insurance. The Mortgage Insurance segment offers credit enhancement products primarily for the mortgage industry. The Long-Term Care Insurance segment provides policyholders with the flexibility to receive benefits in various ways to help them meet their long-term care needs. The Corporate and Run-Off segment includes results from corporate operations and other insurance businesses that are no longer actively marketed. The company was founded in 1871 and is headquartered in Richmond, VA.

– CIG Pannonia Life Insurance OJSC ($LTS:0P2E)

CIG Pannonia Life Insurance OJSC is a leading provider of life insurance products and services in Central and Eastern Europe. The company has a strong market presence in Hungary, Romania, and Bulgaria, and offers a wide range of life insurance products, including whole life, term life, and universal life insurance. CIG Pannonia Life Insurance OJSC has a market capitalization of 12.54 billion as of 2022 and a return on equity of 11.51%. The company is headquartered in Budapest, Hungary.

Summary

Investing in GREAT EASTERN can be a great way to grow your portfolio. The company has a strong history of performance, and its shares have outperformed the market over the long term. GREAT EASTERN is a leading insurer in Asia with a strong presence in Singapore, Malaysia, Indonesia, China, Hong Kong, and other markets. The company has a diversified product portfolio and is well-positioned to benefit from the region’s growing insurance needs.

Investors in GREAT EASTERN can expect to receive regular dividends, as the company has a strong track record of paying out dividends. The shares also offer potential for capital gains, as the company is well-positioned to continue growing its business in the years ahead.