Review on the latest result.
It seems the fall is mainly due to fair value losses of fixed income investments, which is expected
(not vested)
Great Eastern’s Q2 net profit falls 77% to $18.6 mil
Great Eastern Holdings said net profit for the second quarter ended June 30, 2013 fell 77% to $18.6 million from $81.4 million a year ago due to mark-to-market loss in its fixed income investments.
However, the insurance group said underwriting performances across its life assurance funds remained healthy.
http://www.theedgesingapore.com/the-dail...6-mil.html
csfb maintain OUTPERFORM:
● Great Eastern reported a weak headline 2Q13 result, with S$18.6
mn NPAT, down 77% YoY mainly due to the mark to market
losses on the bond portfolio. We encourage investors to look
through this (as for other insurance stocks) and focus on
underlying profit, which was up 32% YoY to S$154 mn.
● Strong new business growth (+34%). Total weighted new
business sales were S$264 mn in 2Q13, up 34% YoY. Singapore
new business growth was strong (+48%) due to growth in all
channels. Malaysia new business was up 15% YoY, with strong
growth in unit linked products.
● Strong value of new business (VNB) growth (+20%) mainly on
the strong new business premiums, and margin improvement due
to business mix enhancement.
● We have increased our target price to S$25.00 (from S$22.50)
due to roll forward of valuation metrics (implies 7.5x VNB
multiple). Great Eastern is trading at embedded value (EV), 13.0x
P/E and 1.6x P/B, which we deem attractive given its robust (and
stable) growth outlook rating – especially now growth is back.
Hi. with the recent announcement during national day rally on changing medishield to medishield life (no opt-out (ie. compulsory), cover pre-existing illnesses, and allowing >90yo to rejoin, etc), any buddies can give some thoughts on how this will affect insurance companies like great eastern?
Thanks!
Not much change as the opt out rate is low
Sure you will be medically insured for WL.
Didn't Pinky also said you have to pay higher premium?
No free lunch lah.
Good morning & Gong Xi Fa Cai every1.
Dividend : 40cts + 5cts special (last yr 27cts + 27cts special)
**The Directors have recommended, for Shareholders' approval at the Annual General
Meeting, the payment of a final tax exempt (one-tier) dividend of 40 cents plus a special
tax exempt (one-tier) dividend of 5 cents per ordinary share. Upon approval, the final
and special dividends will be payable on 8 May 2014. Including the interim tax exempt
(one-tier) dividend of 10 cents paid in September 2013, total dividends for the financial
year 2013 would amount to 55 cents per ordinary share.**
http://infopub.sgx.com/FileOpen/2013_Q4_...eID=273656
<vested>
Good dividend guidance going forward:
first raise in 3 years. now new based dividends should be 10 interim + 40 final before any special so base dividend 50 cents.
Vested
GG
(07-02-2014, 08:42 AM)kbl Wrote: [ -> ]Good morning & Gong Xi Fa Cai every1.
Dividend : 40cts + 5cts special (last yr 27cts + 27cts special)
**The Directors have recommended, for Shareholders' approval at the Annual General
Meeting, the payment of a final tax exempt (one-tier) dividend of 40 cents plus a special
tax exempt (one-tier) dividend of 5 cents per ordinary share. Upon approval, the final
and special dividends will be payable on 8 May 2014. Including the interim tax exempt
(one-tier) dividend of 10 cents paid in September 2013, total dividends for the financial
year 2013 would amount to 55 cents per ordinary share.**
http://infopub.sgx.com/FileOpen/2013_Q4_...eID=273656
<vested>