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





