Great Eastern Holdings today reported profit attributable to shareholders of $81.4 million for the quarter ended 30 June 2012 (2Q12), compared with $117.7 million the year before.
Underwriting profit in 2Q12 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 1H12 was $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 1Q12.
In 2Q12, total weighted new sales for the group rose 4% year-on-year to $197.4 million. On a half-year basis, total weighted new sales increased by 2% year-on-year to $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. In Malaysia, sales performance was anchored by the continued demand for regular premium investment-linked products as well as single premium credit-related products.
2Q12 profit from insurance operations was $75.9 million, 33% lower than the corresponding period a year ago.
2Q12 profit from investments in Shareholders’ Fund was 7% lower year-on-year at $34.2 million as Q2-11 benefited from gains from the sales of investments under more favourable market conditions then.
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.
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