Great Eastern

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TOL:-

So how's their Chongqing Operation ?

Go West ...

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Madoff firm liquidator targets Lion Global

Singapore-based asset management firm Lion Global Investors Ltd is among seven companies targeted by a liquidator of swindler Bernard Madoff's firm in lawsuits to claw back at least US$172.8 million they allegedly received from investments made with him by Fairfield Sentry Ltd.

The lawsuit raises questions over Lion Global parent Great Eastern Holdings' disclosure in 2008 that its indirect exposure of about S$64 million to Madoff's funds will 'have no material impact on the group'.

A spokesman for Lion Global declined to comment, saying its legal advisers are looking into the matter. Great Eastern representatives also declined comment.

Source: The Business Times

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OCBC's insurance arm Great Eastern Q3 net falls 76 pct

SINGAPORE, Oct 31 (Reuters) - Great Eastern Holdings Ltd , the insurance arm of Singapore's Oversea-Chinese Banking Corp Ltd , posted on Monday a 76 percent drop in third quarter net profit, hurt by marked-to-market losses on its investments.

Great Eastern, one of the largest life insurance providers in Singapore and Malaysia, earned S$40.4 million ($32.6 million) in the three months ended September, down from S$168.6 million in the same period a year ago.

"Year-on-year underwriting profit continued to grow, but overall insurance profit declined owing to the adverse market conditions, as well as the net impact of falling interest rates on liability valuations," Great Eastern said in a statement.

Source: Reuters

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DJ Great Eastern Holdings To Invest US$380M In New China Life HK Offering
SINGAPORE (Dow Jones)--Singapore-listed insurer Great Eastern Holdings Ltd. (G07.SG) Monday said it will invest US$380 million in the cornerstone tranche of Beijing-headquartered New China Life Insurance Co.'s Hong Kong share offering.

Great Eastern, which is 87%-owned by Oversea-Chinese Banking Corp. (O39.SG), said it will subscribe to the overseas foreign-invested ordinary shares Hong Kong component--or H-Share component--of the offering.

New China Life has received approval from both Hong Kong and China regulators for a dual Hong Kong and Shanghai listing in December that could raise up to US$3 billion.

The insurer, China's No. 4 life insurer by premiums, has said it plans to sell up to 158.5 million shares in the A-share offering, and 412.2 million shares in Hong Kong, including the over-allotment option.

Source: Dow Jones Newswires

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Insurance company Great Eastern said its fourth quarter net profit fell 19 percent to S$68.9 million from a year ago, hurt by lower earnings from its insurance operations.

Source: Reuters

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Great Eastern said on Friday its first-quarter net profit rose 65 percent to S$262.5 million ($211.2 million) from a year earlier, helped by growth in underwriting profit, higher investment income and mark-to-market gains from the recovery of financial markets.


Source: Reuters

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Insurance firm Great Eastern said its second-quarter net profit tumbled 31 percent to S$81.4 million from a year ago, hurt by a weaker investment performance resulting from less favourable market conditions.


Source: Reuters

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With an estimated $1.15 billion in net gains from the sale of its stake in APB and F&N, OCBC and the controlling Lee family can easily use $1 billion of that to scoop up the remaining 13% in insurer Great Eastern Holdings that the bank does not already hold.


Source: The Edge

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The on-going takeover tussle for APB and F&N is nearing an end with today’s vote by F&N shareholders on the sale of APB.

Among the potential beneficiaries of the whole saga is Great Eastern, which sold its stakes in F&N and APB to Thai Bev/Kindest Place back in July, reaping total sales proceeds of $2.4bn.

Given the low historical cost of these legacy shares, GEH will realize a total pre-tax gain of ~S$2.2bn.

While most of the gains will accrue to GEH’s insurance funds, GEH itself will realise a net gain of $421m ($0.89/share) for its shareholders.

Taking into account new business embedded value created in 1H12 and the net gain from the sale of shares, we estimate this will lift GEH’s embedded value to well over S$8bn, or $17/share.

GEH’s stock price has appreciated by some 15% to around $15 since the saga first broke out, but remains under-rated given a Price/Embedded Value (P/EV) of 0.9x.

Arising from the gain from the sale of its F&N/APB shares, GEH could dish out a special dividend to shareholders as it remains well capitalised with capital adequacy ratios at over 200%, well in excess of the 120-130% regulatory requirements.

Another potential catalyst is a third privatisation attempt by OCBC to buy out the remaining 13% of minority shareholders. The previous two attempts, in 2004 and 2006, had lifted OCBC’s stake in the insurer from 49% to the current 87% at P/EV ratios of 1.2-1.5x.

On a P/EV multiple of 1.3x, GEH would be valued at $22/share. We recommend a Trading Buy.


Source: DMG

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Insurer Great Eastern Holdings' third-quarter net profit jumped more than 15 times to S$619.6 million ($508 million), boosted by a one-off gain of S$421.6 million from the sale of its stake in Asia Pacific Breweries and Fraser and Neave.

Excluding this gain, Great Eastern earned S$198 million in July-September, helped by growth in underwriting profit and mark-to-market gains on investments.


Source: Reuters