24% drop in Q2 profits at Great Eastern

Great East­ern saw its earn­ings from April to June peri­od declined from $97.7 mil­lion last quarter to $74.4 mil­lion this quarter. This is 24% drop due to lacklustre invest­ment returns stemmed from con­cern relat­ing to euro zone debt, accord­ing to the insurer. Its returns from the group’s non-par­ti­cip­at­ing fund dived 74% to $19.4 mil­lion from last year. Profit from insur­ance oper­a­tions in Q2 plunged 43% year-on-year to $75.0 mil­lion from $131.3 mil­lion due to poor invest­ment per­form­ance.

How­ever, the res­ult became bet­ter if it excluded a one-time profit con­tri­bu­tion (after tax) of $198.5 mil­lion in first half of 2009.The one-time profit con­tri­bu­tion last year arose from the move to a new risk-based reg­u­lat­ory cap­it­al frame­work in Malay­sia and a port­fo­lio match­ing exer­cise in Singa­pore. Group profit attrib­ut­able to share­hold­ers is $253.5 mil­lion for the first half of 2010, an increase of 86% over the same peri­od last year after exclud­ing the one-time profit. Profit from the Group’s insur­ance oper­a­tions was $226.9 mil­lion, which is 14% high­er com­pared with last also when the one-time profit con­tri­bu­tion is also excluded.

Earn­ing per share now stands at  16 cents, down from 21 cents pre­vi­ously.

Gross premi­ums col­lec­ted from poli­cy­hold­ers, however,increased 9% to $1.367 bil­lion due to increased volumes of insur­ance plans sold, espe­cially invest­ment-linked reg­u­lar premi­um plan sold in Malay­sia.

 

Source : www.lifeisgreat.com.sg and The Straits Times, 29 July 2010

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