Home News Banking & finance

Great Eastern plans growth amid rising rates, demands for enhancing shareholders’ value

Goola Warden
Goola Warden5/4/2022 08:20 PM GMT+08  • 10 min read
Great Eastern plans growth amid rising rates, demands for enhancing shareholders’ value
Great Eastern plans growth amid rising rates, demands for enhancing shareholders’ value - THE EDGE SINGAPORE
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

In a Q&A ahead of Great Eastern Holdings’ (GEH) AGM held on April 19, a shareholder pointed out that returns on shareholders’ funds at 5.59% over five years were low. “We would appreciate it if the board did something concrete instead of repeating the same thing (‘we will look into enhancing the shareholders’ value’) over the last few years,” the shareholder asks.

In a reply, GEH said, “We have increased our dividend this year. Dividend per share has risen to 65 cents from 60 cents a year ago. While we acknowledge the shareholder’s concerns, we believe that the headwinds that have surfaced this year warrant a strong and sound capital base. Near term, concerns of higher inflation, rising bond yields and slower economic growth have made the financial markets and business operations extremely challenging and volatile to navigate. A solid capital buffer allows us the confidence to weather financial markets’ volatility, as well as the flexibility to capitalise on internal and external opportunities to deploy capital that will provide the best shareholders’ returns.”

Life insurance - unlike general insurance - is a long-dated business. No surprise then that insurance companies usually hold excess capital to cater to different economic cycles including crises and regulatory changes.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now