Is Great Eastern A Great Stock To Buy?
πππOn Wednesday, the Singapore market suffered a bruising wake up call. Driven by a brutal Citigroup downgrade on $OCBC Bank(O39.SI)$
Yet amidst this selloff, the spotlight has swung dramatically onto a legendary enterprise that refuses to be ignored: $Great Eastern(G07.SI)$ .
For investors looking beyond the daily panic, Great Eastern isn't just a defensive shelter. It is company of immense value, backed by over a century of history, massive earnings power and a corporate drama that could explod le all over again.
What Does Great Eastern Do?
Great Eastern is an absolute titan. It provides life, health and general insurance alongside wealth accumulation and asset management products. Great Eastern boasts over 16 million policyholders and commands a staggering asset pool of over SGD 103.8 billion, anchoring the financial security of families across Singapore, Malaysia and the wider region.
Is Great Eastern Singapore's Oldest Insurance Company?
Yes. Great Eastern is a 118 year old institution founded in 1908. It has survived world wars, financial depressions and pandemics. Great Eastern is deeply woven into the very fabric of Singapore's financial history.
The Corporate Drama: The 2025 Showdown
You cannot talk about Great Eastern without talking about its majority owner, OCBC which holds a crushing 93.72% stake in the company.
The defining moment for minority shareholders arrived in July 2025. To resolve a lengthy trading suspension caused by a low public float, Great Eastern proposed a formal delisting backed by a massive USD 900 million conditional exit offer from OCBC at SGD 30.15 per share.
What followed was a masterclass in corporate chess. At the Extraordinary General Meeting (EGM) on 8 July 2025, activist minority shareholders refused to yield, arguing the bid undervalued the insurer's true long term worth. Only 63.5% voted in favour, falling short of the required 75% minority approval threshold.
The delisting bid collapsed spectacularly and the offer lapsed. Great Eastern executed a creative 1-1 bonus share issue to restore its public float and triumphantly resumed trading on the SGX.
Will A Privatisation Attempt Happen Again?
Formally, OCBC Chairman Andrew Lee stated at the April AGM that privatisation of Great Eastern is a "chapter behind us". OCBC has no intention to make further offers.
However in corporate finance, intentions may change as economic conditions evolve. Because full ownership perfectly aligns with OCBC's "One Group" regional wealth strategy, long term market watchers believe that if Great Eastern's valuation ever becomes overly depressed again, OCBC could inevitably return to the table.
Great Eastern's Performance and Income Engine
Those activist minority shareholders who held the line in 2025 have been completely vindicated by Great Eastern's excellent performance.
Share Price Performance:
Great Eastern is up 27.15% year todate and 29.44% in the last 12 months.
Explosive Earnings:
Great Eastern reported a jaw dropping 103% surge in Q2 2026 profits to SGD 503.2 million. This brings its total H1 2026 net profit to an incredible SGD 849.5 million.
A Reliable Growing Payout:
For passive income seekers, Great Eastern distributes its dividends on a highly predictable semi annual basis: twice a year in May and August.
Sturdy Dividend Yield:
Management backed its stellar earnings by hiking its interim dividend by 17% to SGD 0.35 per share. This brings the stock's forward dividend yield to a lucrative 3.34%, safely locking in premium cash flow compared to broader indices.
What Do Analysts Say?
Analysts remain heavily bullish on Great Eastern with a target price of SGD 26.00, an upside potential of 33.4%.
Concluding Thoughts
While Wednesday's banking selloff showed how quickly short term panic can fracture market confidence, Great Eastern offers long term income investors an entirely different narrative. It is a cash generating machine protected by an impenetrable economic moat.
By utilising the newly minted SGX 10 share minimum board lot rules, the playing field has been completely levelled. Retail investors can now claim a stake in this historic powerhouse for a tiny fraction of its historical entry cost. You are buying into a business that earns premium profits, protects your downside via its deep value and stands proudly as a fortress against macroeconomic storms.
When the market noise threatens to derail your financial goals, remember the timeless advice of the Father of Value Investing, Benjamin Graham:
"In the short run, the market is a voting machine but in the long run, it is a weighing machine".
Let the crowd vote in fear today. Weigh the absolute structural brilliance of Great Eastern, utilise the 10 share rule and build your wealth block by block.
@Tiger_SG @TigerStars @Tiger_comments @WallStreet_Tiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- skippixΒ·10-08 09:12TOPCalling it a fortress skips the rate sensitivity. Investment income looks better now, but how sticky is that if the cycle turns?1Report