Great Eastern’s Q4 profit falls 26%

SINGAPORE — Insurer Great Eastern Holdings said yesterday net profit for the fourth quarter plunged 26 per cent to S$165.9 million, because of exceptional items and revaluation losses.

Income from its insurance business decreased 23 per cent to S$172.1 million, partly because of the combined effect of two one-off items: Namely, a release of tax provisions that benefitted the Singapore non-participating fund and a negative impact from a change in the timing of terminal bonus recognition for the Malaysia participating fund.

Total weighted new sales rose 19 per cent to S$306.5 million, with growth across all channels in Singapore, a pick-up in sales of savings and retirement products in Malaysia, as well as continuing growth in takaful (a type of insurance system devised to comply with Shariah laws) sales. In Singapore, total weighted new sales rose 22 per cent to S$182.9 million.

For the full year, net profit fell 43 per cent to S$674.8 million, resulting from the absence of a previously enjoyed one-off gain from the sale of the group’s shareholdings in Asia Pacific Breweries, and conglomerate Fraser and Neave in the third quarter of 2012. Excluding this one-off gain, net profit would have fallen 12 per cent instead.

The insurer’s board proposed a final dividend of 40 cents a share and a special dividend of 5 cents a share.