Source: http://www.reuters.com/article/2012/08/01/markets-singapore-stocks-idUSL4E8J100620120801
Net Profit of S$81.4 million in Second Quarter. Strong first-half earnings of S$343.9 million, a 24% year-on-year increase.
Great Eastern Holdings Limited today reported profit attributable to shareholders of S$81.4 million for the quarter ended 30 June 2012 (Q2-12), compared with S$117.7 million the year before. Underwriting profit in Q2-12 achieved healthy growth over the same period last year, driven by the continued profitability of protection-based products in Singapore and investment-linked products in Malaysia. However, earnings were significantly impacted by weaker investment performance resulting from less favourable market conditions in the quarter.
The Group's net profit for 1H-12 was S$343.9 million, an increase of 24% against the same period last year. The strong performance benefited from higher mark-to-market gains booked in Q1-12.
Sales: In Q2-12, total weighted new sales for the Group rose 4% year-on-year to S$197.4 million. On a half-year basis, total weighted new sales increased by 2% year-on-year to S$372.7 million as the sales of single premium endowment products fell across the Group, resulting from the lack of appropriate underlying investments. In Singapore, sales growth was supported by sustained demand for regular premium products from all channels.
The Group's long-term economic profitability, as measured by new business embedded value (NBEV), rose by 4% year-on-year in Q2-12 to S$87.3 million. On a half-year basis, NBEV grew by 8% year-on-year to S$170.3 million. The positive growth trend in NBEV was accomplished by meeting the needs of customers through the sales of regular premium protection-based products.
Q2-12 profit from insurance operations was S$75.9 million, 33% lower than the corresponding period a year ago. During the quarter, falling interest rates, widening credit spreads and decreases in equity prices impacted both liability and asset valuations, resulting in overall mark-to market losses. However, underwriting performance continued to be strong, offsetting these losses. 1H-12 profit from insurance operations increased by 12% year-on-year to S$302.3 million, benefitting from the strong performance in Q1-12.
Q2-12 profit from investments in Shareholders' Fund was 7% lower year-on-year at S$34.2 million as Q2-11 benefited from gains from the sales of investments under more favourable market conditions then. 1H-12 profit from investments in Shareholders' Fund rose 66% year-on-year to S$103.4 million, largely arising from mark-to-market gains in held-for-trading investments recorded in Q1-12.
The Board of Directors has declared an interim tax exempt (one-tier) dividend of 10 cents per ordinary share for financial year 2012, payable on 5 September 2012.
"Capitalising on our multi-dimensional distribution network comprising agency, bancassurance and financial advisory channels, we achieved steady growth in our underwriting business in the first half of the year and increased NBEV by a healthy 8%.
The Group's net profit for 1H-12 was S$343.9 million, an increase of 24% against the same period last year. The strong performance benefited from higher mark-to-market gains booked in Q1-12.
Sales: In Q2-12, total weighted new sales for the Group rose 4% year-on-year to S$197.4 million. On a half-year basis, total weighted new sales increased by 2% year-on-year to S$372.7 million as the sales of single premium endowment products fell across the Group, resulting from the lack of appropriate underlying investments. In Singapore, sales growth was supported by sustained demand for regular premium products from all channels.
The Group's long-term economic profitability, as measured by new business embedded value (NBEV), rose by 4% year-on-year in Q2-12 to S$87.3 million. On a half-year basis, NBEV grew by 8% year-on-year to S$170.3 million. The positive growth trend in NBEV was accomplished by meeting the needs of customers through the sales of regular premium protection-based products.
Q2-12 profit from insurance operations was S$75.9 million, 33% lower than the corresponding period a year ago. During the quarter, falling interest rates, widening credit spreads and decreases in equity prices impacted both liability and asset valuations, resulting in overall mark-to market losses. However, underwriting performance continued to be strong, offsetting these losses. 1H-12 profit from insurance operations increased by 12% year-on-year to S$302.3 million, benefitting from the strong performance in Q1-12.
Q2-12 profit from investments in Shareholders' Fund was 7% lower year-on-year at S$34.2 million as Q2-11 benefited from gains from the sales of investments under more favourable market conditions then. 1H-12 profit from investments in Shareholders' Fund rose 66% year-on-year to S$103.4 million, largely arising from mark-to-market gains in held-for-trading investments recorded in Q1-12.
The Board of Directors has declared an interim tax exempt (one-tier) dividend of 10 cents per ordinary share for financial year 2012, payable on 5 September 2012.
"Capitalising on our multi-dimensional distribution network comprising agency, bancassurance and financial advisory channels, we achieved steady growth in our underwriting business in the first half of the year and increased NBEV by a healthy 8%.
This quarter, we launched the Live Great Programme, the first integrated Health and Wellness programme by an insurance company in the region. Customers can leverage on key initiatives within this unique programme to help them live healthier, better and longer.
Brand: According to Brand Finance, GE ranking improved to 7th out of 100 top Singapore brands. The Great Eastern brand is now valued at US$1.41 billion (S$1.79 billion), a rise of 22%.
