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					                                                                         Financial Results




                         Chairman’s
                                                                                                                        value, trustworthiness, strong image and        which is expected to contribute significantly
                                                                                                                        understanding of customer needs.                to its embedded value. The Company will
                                                                         The Profit attributable to Shareholders for                                                    also focus on consolidating its position in
                                                                         FY2004 was RM328.46 million, an increase       The Company’s Internal Audit team clinched      the sale of its traditional products to
                                                                         of 36.3% over the preceding year’s profit of   two awards in 2004, i.e. 1st runner-up in the   sustain premium growth and our leadership
                                                                         RM241.06 million. The significant increase     non-listed/public sector category for The       position in life insurance.




                         Statement
                                                                         was due partly to the profits from the         Best Internal Audit Practice Inaugural Award
                                                                         insurance operations and partly to the         2004 (“BIAPA”) and in 3rd placing of            Recognising the Agency force as its most
                                                                         RM35.0 million profit arising from the         Category 2 for the Corporate Awards 2004,       effective distribution channel, the Company
                                                                         disposal of the Company’s shareholdings in     organised by the Institute of Internal          is committed to introducing innovative
                                                                         OCBC Bank pursuant to the Selective            Auditors Malaysia. The BIAPA Award              policies and investing in technology and
                                                                         Capital Reduction Exercise undertaken by       recognises outstanding internal audit           training programmes to support our valued
                                                                         OCBC Bank.                                     practice through continuous development         business partners.
                                                                                                                        and promotion of best practices in internal
                                                                         The asset size of the Company grew to          audit, promotion of leadership and              As a subsidiary of OCBC Bank, the
                                                                         RM24.08 billion in 2004, 14.7% higher than     professionalism and enhancement of              Company has established a task force in
                                                                         the preceding year of RM21.00 billion.         internal audit roles in corporate governance,   Malaysia to identify and enhance revenue
                                                                         Investment income increased 20.1% to           risk management and internal control.           synergies in distribution, cross-selling and
                                                                         RM1.22 billion. Gross premium income                                                           product innovation. We continue to explore
                                                                         improved by 7.3% to RM3.69 billion,            The National Service Programme, also            further opportunities to market our products
                                                                         supported by an increase of 45% in the         known as the Program Khidmat Negara,            through other distribution channels. In
                                                                         sales of Investment-Linked Products (“ILP”)    was first conducted by the Ministry of          January 2004, the Company entered into a
                                                                         as compared to the preceding year.             Defence Malaysia in 2004. The Company           strategic tie-up to sell our insurance
                                                                                                                        became the first insurance company to offer     products through a leading Bank’s branch
                                                                         Dividends & Policy Owners’                     free Term Life and Personal Accident            network.
                                                                         Bonuses                                        insurance coverage of up to RM20,000
  I am pleased to report that Great Eastern Life Assurance (Malaysia)                                                   during the three-month training period.         Discussions between our parent company,
                                                                         For the FY2004, the Board of Directors is                                                      GEH to merge our Malaysian operations
                                                                         recommending a First and Final Dividend of     The Company continued to contribute             with PacificMas Bhd continued to be actively
  Berhad (“the Company”) achieved record financial results for the       RM4.56 (gross) per ordinary share of           to the less fortunate through its on-going      pursued during the year. Satisfactory
                                                                         RM1.00 each less 28% Malaysia income tax       community projects under the umbrella of        progress has been achieved in preparation
                                                                         compared with RM3.34 (gross) per ordinary
  financial year (“FY”) ended 31 December 2004. The Company              share in FY2003. The amount of dividends
                                                                                                                        the Great Eastern ChildrenCare Charity
                                                                                                                        Fund launched in 1995. The staff and
                                                                                                                                                                        to rationalise the Malaysian insurance
                                                                                                                                                                        businesses and other financial activities.
                                                                         (net of tax) to be distributed in respect of   members of the field force in a joint
  maintained its leading position in the life insurance business in      FY2004 will be RM328.32 million compared
                                                                         with the distribution of RM240.48 million
                                                                                                                        effort collected RM1.1 million for the Fund     Appreciation
                                                                                                                        since its launch. To-date, approximately
                                                                         last year.                                     RM800,000 has been donated to more              On behalf of the Board of Directors, I would
  Malaysia with an in-force market share of 21.1% in terms of new                                                       than 77 charitable organisations under          like to thank the management, staff and
                                                                         I am also pleased to announce that the         the umbrella of National Welfare Foundation     agents for their dedication, commitment and
                                                                         Company will declare a One-Time Special        in the form of special equipment and            contribution. I also take this opportunity
  business weighted premium.                                             Bonus (‘Special Bonus’) totalling RM60.2       learning aids.                                  to thank our policy owners, business
                                                                         million to nearly one million policy owners                                                    associates and customers for their strong
                                                                         who bought the Company’s certain Regular       When the Tsunami struck the northern coast      support. I would also like to thank my fellow
                                                                         Premium Whole Life and Endowment               of Malaysia, including parts of Langkawi and    Directors for their wise counsel and
                                                                         Participating policies on or before 31         Penang, the Company’s staff and members         constructive contribution to our Board
  Following the successful Voluntary Unconditional Offer (the “Offer”)   December 2003. This Special Bonus is
                                                                         given in addition to the usual bonuses
                                                                                                                        of the field force contributed more than        deliberations.
                                                                                                                        RM125,800 in aid of the Tsunami victims in
                                                                         declared annually. The Special Bonus is        Malaysia. The total contribution by GEH         With the commitment of the Board of
  made by the Oversea-Chinese Banking Corporation Limited (“OCBC         given to policies with healthy asset share     Group, staff and members of the field force     Directors, management and staff, as well as
                                                                         position after considering the favourable      to the respective Tsunami funds amounted        the co-operation and support of the agency
                                                                         investment and operating experience
  Bank”) to acquire the issued shares of our parent company Great        for the past few years. This is a one-off
                                                                                                                        to RM460,000.                                   force and policy owners, we are poised to
                                                                                                                                                                        meet the challenges in the years ahead.
                                                                         and non-recurrent special bonus.               Looking Ahead
  Eastern Holdings Limited (“GEH”), the Company, as a consequence        Great Service Culture                          The growth momentum of the economy is           Michael Wong Pakshong
                                                                                                                        expected to continue in 2005, albeit at a       Chairman
  also became a subsidiary of the OCBC Bank.                             In April 2004, the Company received            more moderate pace supported by strong          21 March 2005
                                                                         the Reader’s Digest SuperBrands Gold           domestic demand growth, driven largely by
                                                                         Award (Insurance Category for Malaysia).       private sector spending. The real growth in
                                                                         The award was accorded to the Company          Gross Domestic Product (“GDP”) is
                                                                         for receiving the highest ratings from         expected to moderate to 6.0% in 2005 from
                                                                         quantitative and qualitative consumer          7.0% in 2004. The main thrust for the
                                                                         votes on five key attributes of quality,       Company is to increase its ILP business,




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Great Eastern                                                                                                                                                                                      Great Eastern
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Annual Report ’04                                                                                                                                                                              Annual Report ‘04

				
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posted:8/3/2011
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