Great Eastern Holdings' profits soar 124% to $342.7m in Q1

Gross premiums rose 6% thanks mySalam Scheme contributions.

Great Eastern Holdings (GEH) popped the champagne in Q1 2019 as its profits grew 124% to $342.7m from $152.9m in the same period in 2018.

According to its financial statement, gross premiums grew 6% to $2.59b from $2.43b partly due to the contribution from the mySalam Scheme for the B40 household in Malaysia.

Net investment income increased 10% to $629.1m from $570.4m due to higher interest income. Meanwhile, fees and other income fell 14% to $17.9m from $20.9m mainly due to lower fee income from the GEH’s asset management arm, Lion Global Investors Limited.

Gross claims, surrenders and annuities increased 3% to $1.48b from $1.44b due to higher policy maturities and worsened medical claim experience. Meanwhile, commissions and distribution expenses increased 9% to $249.3m from $228.2m largely due to higher sales of regular premium policies.

No interim dividend has been declared in Q1 2019.