Great Eastern's Profit Drops 67%

Great Eastern's Q1 2008 net profit decreases by 67% from S$134.5 mil to S$45.0 mil.
Some detailed breakdown of Q1 2008 net profit:

• Life and general insurance operations: S$14.4 mil
• Non-par Fund: -S$29.7 mil
• Shareholders' Fund investment profit: $61.8 mil (mainly due to gain in disposal of Straits Trading)
• Fee and Other Income: S$22.3

The huge loss in the non-par fund is due to:

• Marked-to-market loss due to volatility of debt and equity market
• Increase in liability due to lower discount rate used

Tell me if I am wrong, but it seems to me that the non-par fund's assets and liabilities are not well matched, hence resulted in the loss when market moves against you. Something for Malaysia insurers to watch out for when RBC and FRS139 are introduced here.

Source: Great Eastern